Citigroup is preparing hundreds of job cuts at its slumping trading division as more of the world's largest firms respond to dormant clients with layoffs.
Banks across Wall Street posted almost uniform falls in their revenues from their trading businesses in the second quarter of the year, as low levels of client activity and low interest rates hit performance.
The New York-based bank plans to slash jobs across its fixed-income and stock-trading operations over the course of 2019, according to people familiar with the matter, Bloomberg reported.
That includes at least 100 jobs in the equities unit, which would amount to almost 10% of the division's workforce, the people said. About 80 of the cuts will take place at Citigroup's London operations, one of the people said.
Earlier this month the bank kicked off Wall Street's earnings season with higher profits despite a tough few months for its traders and M&A bankers.
It beat analyst estimates by posting second-quarter profit of $4.8bn, up 7% on last year, despite revenues in its trading and investment banking arms sliding.
Citi is also merging its equities and prime services division into a single unit — Equities and Securities Services — to create an "integrated offering" for its clients.
Deutsche Bank made the biggest move earlier this month, when the firm announced it was exiting equities trading as part of a restructuring that included 18,000 job cuts. Other major banks in Europe, including HSBC Holdings Plc and Societe Generale SA, are also firing hundreds of workers in an atmosphere that may be the gloomiest since the financial crisis.