Citigroup Inc has joined the ranks of global banking institutions that are scaling back their respective London operations in a bid to reduce costs amidst waning profit margins and revenues, per a recent Reuters report.
The move follows on the heels of several other industry mainstays taking similar action, which to date includes Deutsche Bank, Standard Chartered, Barclays, and Nomura. While each of these lenders has in some capacity trimmed their respective workforces, there have been varying degrees or strategies in doing so. For example, Deutsche Bank opted to gut the majority of its personnel in the region, paving the way for upwards of 35,000 job cuts over the next few years. Other banks such as Standard Chartered have chosen to follow a revamped retail focus, shifting their focus and assets as profit margins have fallen.
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Citigroup has fallen somewhere in the middle of this spectrum, as it will be dismissing 70 traders and sales personnel in London this month. The decision comes during a period when operating costs are soaring and lower trade revenues have afflicted balance sheets. While currently unconfirmed, the group has also jostled with the notion of cutting an additional 200 jobs across its operations and technology groups in its European operations.
The cuts are largely expected given Citigroup’s woeful Q4 2015 earnings report that left much to be desired for investors. This trend also looks to continue into 2016, with operating costs being a large point of emphasis. To date, the lender has parted ways with 2,000 jobs globally though this is clearly expected to rise moving forward.
Since 2012 alone when Citigroup’s Chief Executive Officer (CEO) Mike Corbat assumed the mantle of control over the lender, the bank has gutted its global workforce by more than 30,000. As of December 31, 2015, the bank employed 231,000 workers, down almost -40% from 2007.