Citigroup Inc. And Barclays plc began eliminating jobs in its investment-banking operations, joining other major banks in response to declining revenue from the business.
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Dozens of positions at New York-based Citigroup were cut this week, while London-based Barclays has begun to cut around 200 overall, according to people familiar with those moves.
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US banks have been hurt by a dramatic slowdown in investment banking as volatility put pressure on capital markets and asset management. Third-quarter investment-banking fees were down 64% at Citigroup, and 45% at Barclays.
Wall Street banks also regularly remove underperformers ahead of the annual bonus season at the beginning of the year. Still, the move marks a reversal for Citigroup, which is adding talent as it seeks to boost its position in certain sectors, including healthcare and technology.
Morgan Stanley is considering eliminating about 50 investment-banking jobs in the Asia-Pacific region, people familiar with the matter said earlier this month. This was followed in September by a similar move by Goldman Sachs Group Inc, which is beginning its biggest round of job cuts since the start of the pandemic.
Goldman said in July that it planned to reschedule hiring and reinstate annual performance reviews in an effort to rein in expenses in what it called a “challenging operating environment.”
The grim news on the job front comes after two years of soaring profits and bonuses fueled by massive government stimulus programs aimed at keeping the economy from slipping into recession during the pandemic. The largest US banks continued to increase their workforce in the third quarter.
This story has been published without modification in text from a wire agency feed.
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