The biggest Wall Street banks are facing their lowest first-half trading revenue in more than a decade as they contend with reticent clients spooked by a global trade war and volatility in asset prices hovering around record lows.
Tuesday 30, July 2019
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, reported Bloomberg.
The firm plans to slash jobs across its fixed-income and stock trading business over the course of 2019, that includes at least 100 jobs in its equities unit, which would amount to almost 10 per cent of that division.
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 such as HSBC Holdings and Societe Generale, are also firing hundreds of workers in an atmosphere that may be the gloomiest since the financial crisis.
The bank also is combining its equities business with its prime, futures and securities services unit.
Citigroup executives said this month they would continue to cut costs in the second half of the year after trimming more than analysts expected last quarter.
Mike Corbat, Citi’s Chief Executive Officer, said, “We’re going to do everything within our power to meet a goal of a 12 per cent return on tangible equity this year, the firm will not end planned investments in technology or risk its efforts to improve safety and soundness.”