Citi said to cut less than 1% of workforce, with investment-banking staff targeted

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• Citigroup (NYSE:C) is laying off less than 1% of its 240,000-person workforce, with employees across its investment banking arm, U.S. mortgage-underwriting unit and operations and technology segment among those affected, Bloomberg reported Thursday, citing people with knowledge on the matter.
• The move comes as Wall Street behemoths seek to put a lid on costs while grappling with a slowdown in dealmaking as well as debt and equity issuances in the wake of rising interest rates, persistent inflation and economic uncertainty.
• Nonetheless, the layoffs at Citi (C) are part of its normal business planning, the people told Bloomberg.
• During the fourth quarter, the megabank posted stronger than expected Q4 top and bottom lines but there were some negative developments, such as a Q/Q climb in operating expenses. Also, sales from its Legacy Franchise unit plunged to $2.10B, a Q/Q slump of 20%.
• In February, Citigroup disclosed that it expects to incur $190M of costs for winding down its institutional and consumer banking businesses in Russia.

Comments

[rockjcp]

Citi is waiting for the Fed to approve its plan and Mexico to close its operations. When these are behind Citi it will roar ahead. Nibble now ahead of the explosion.

[typecheck]

Anyone knows why bank stocks are so weak today?

[rockjcp]

Waiting on Mexico closure? Stress test results? Resumption of stock buyback.

[kbmullen5]

Normal attrition will reduce the total number of employees by approximately 7,200 given a 3% annual attrition rate. So is the 1% on top of normal attrition or does it mean they'll limit hiring this year to just 4,800?

[VanceBaggers]

Wow less than 1%, incredible.... Probably should be 10%.

[Winnertakesall]

10% would be better.... start with all the HR/DE&I people first.

[sirius rocks]

@Winnertakesall equity and diversity is a total waste and ceos are starting to wake up

[sirius rocks]

@Winnertakesall AMEN. Don’t forget the “ happiness director”