logo
Share SHARE
FONT-SIZE Plus   Neg

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

Citigroup Inc.'s (C) 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.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Alteryx, Inc., a provider of self-service data analytics software, is the latest tech company to go public in March. Alteryx said it has priced its IPO of 9 million shares of its Class A common stock at $14 per share, at the top end of its range of $12 to $14 per share. Dunkin' Donuts is bidding adieu to one of its frozen coffee beverages this summer. However, loyal fans of the decades-old menu staple have not taken kindly to the news. The coffee chain said it will discontinue its popular Coffee Coolatta beverage this summer and instead, introduce the new Frozen Dunkin' Coffee, made with coffee extract, sugar and milk. Canadian pipeline operator Enbridge Inc. said it will cut about 1,000 jobs, or six percent of its workforce, following the completion of its acquisition of Houston-based Spectra Energy Corp. The job cuts will take place across the merged company.
comments powered by Disqus
Follow RTT