Breaking News
FONT-SIZE Plus   Neg
Share SHARE

Reports: Citigroup Investment Banking Unit To Cut Bonuses, 150 Jobs

RELATED NEWS
Trade C now with 

Citigroup Inc.'s (C: Quote) trading and investment-banking division plans to cut 150 jobs and reduce bonuses by up to10 percent, according to media reports on Thursday.

The job cuts will impact businesses, including equities trading and underwriting. While bonuses for this year will reduce across the securities and banking division, top performers at the unit are likely to be spared.

The securities and banking division employs about 17,000 people. Citigroup cut 1,200 jobs in its investment banking division in the fourth quarter of 2011 and also cut an additional 350 investment banking jobs in the first half of 2012.

Citigroup has been urged by some of its shareholders to seek separation of its business, prompted by fears of inherent business risks and poor stock performance. The urging to separate the company comes just months after former CEO Sandy Weill said he thinks the bank's current business model has failed and that it should ideally separate.

In October, Vikram Pandit resigned as CEO of Citigroup after a span of five years and was replaced by Michael Corbat. Though Pandit was instrumental in guiding the company through the 2008 financial crisis, Citigroup's shares lost about 90 percent of its value during this period.

Under Pandit, Citigroup abandoned its acquisition-fueled growth strategy that catapulted the bank into a financial giant and trimmed itself by divesting non-core businesses and costs cutting measures. Citigroup also took $45 billion in bailout funds to stay afloat during the crisis period.

C closed Thursday's trading at $35.21, up $0.14 or 0.40 percent on a volume of 31.68 million shares. In after-hours, the stock declined $0.16 or 0.45 percent to $35.05.

Register
To receive FREE breaking news email alerts for Citigroup Inc. and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Stocks moved notably higher over the course of the trading day on Friday after initially showing a lack of direction. The gains on the day extended the recent upward trend by the markets, with the tech-heavy Nasdaq reaching its best closing level in almost a month. Looking to capitalize on news of an Ebola diagnosis in New York City, Republican Senate candidate Scott Brown issued a statement Friday criticizing his Democratic opponent Sen. Jeanne Shaheen, D-N.H., for "waffling" on a travel ban. In another troubling sign for Democrats, the results of a Gallup poll released on Friday show that Tea Party Republicans are much more motivated to vote in the upcoming midterm elections than other Americans. The poll found that 73 percent of Tea Party Republicans are "extremely" or "very" motivated to vote in this year's elections.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.