- Citigroup ( NYSE: C ) is laying off less than 1% of its 240,000-person workforce, with employees across its investment banking arm, U.S. mortgage-underwriting unit and operations and technology segment among those affected, Bloomberg reported Thursday, citing people with knowledge on the matter.
- The move comes as Wall Street behemoths seek to put a lid on costs while grappling with a slowdown in dealmaking as well as debt and equity issuances in the wake of rising interest rates, persistent inflation and economic uncertainty.
- Nonetheless, the layoffs at Citi ( C ) are part of its normal business planning, the people told Bloomberg .
- During the fourth quarter, the megabank posted stronger than expected Q4 top and bottom lines but there were some negative developments, such as a Q/Q climb in operating expenses. Also, sales from its Legacy Franchise unit plunged to $2.10B, a Q/Q slump of 20%.
- In February, Citigroup disclosed that it expects to incur $190M of costs for winding down its institutional and consumer banking businesses in Russia.
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Citi said to cut less than 1% of workforce, with staffers in investment banking targeted