Citi, Barclays set to trim investment banking headcounts

21st Mar 2024 11:45

(Sharecast News) - Banking giants Barclays and Citigroup were reportedly gearing up to trim their investment banking workforce, it emerged on Thursday, amid a slowdown in dealmaking activity within the sector.

According to Bloomberg, Barclays was set to axe several hundred positions in the coming months, although the final tally was yet to be determined.

Sources familiar with the matter said the layoffs were part of Barclays' routine process of shedding underperforming employees.

The bank announced its intention to restructure its corporate and investment banking segments last month, with some advocating for a complete separation of the division due to its earnings volatility and comparatively smaller scale compared to its Wall Street counterparts.

At the same time, Citigroup - the third-largest US bank by assets - was planning to cut 20 positions in London, City AM reported, primarily impacting junior staff at analyst to director levels.

The move aligned with a broader restructuring spearheaded by chief executive officer Jane Fraser to slash 20,000 jobs across the company.

Neither Barclays or Citigroup had commented on the reports by midday on Thursday.

Reporting by Josh White for Sharecast.com.