Citigroup is set to cut 35 jobs in its UK investment bank amid a sweeping reorganisation unveiled by its chief executive Jane Fraser.
The US bank told staff in its London-headquartered investment bank about its plans to cut jobs this week, according to people familiar with the matter. The reductions will include three managing directors and nine directors, they said.
The cuts amount to around 5% of employees within the unit in the UK and are related to the business environment rather than Fraser’s broader overhaul at Citigroup.
A Citi spokesperson declined to comment.
Citi cut 30 jobs in its UK investment bank in June, with a further 20 coming from its corporate banking unit, Financial News reported. Banks have battled an ongoing slump in dealmaking fees, which have fallen 21% in the first nine months of this year following a torrid 2022. Goldman Sachs and Morgan Stanley have also laid off hundreds of dealmakers this year.
The cuts come after UK chief executive James Bardrick sent a note to its 16,000 staff in the country warning that redundancies were possible as it starts the second phase of implementing the changes revealed by Fraser on 13 September.
READ Citigroup set to cut UK jobs after CEO Jane Fraser’s sweeping changes
Fraser is cutting layers out of Citigroup’s management structure and reorganising the bank into five key divisions. This means the elimination of its institutional clients group, which was headed by veteran banker Paco Ybarra, and stripping out regional executives while creating one ‘international’ unit outside of the US.
The changes are the most significant at Citi for two decades and are expected to lead to job cuts across the organisation. Fraser said she has taken “hard, consequential, tough decisions” which would “not be universally popular within our bank”.
Bardrick told staff on 22 September that the review “may lead to a reduction in roles in some parts of the business, and changes to some other roles. In some cases, colleagues may be placed at risk of redundancy”.
Fraser’s reorganisation saw European chief executive David Livingstone moved to head up a new division called ‘clients’. Regional chief executive roles will be cut under the new structure, and Fraser said that the bank would also look to eliminate many co-head roles.
In the immediate aftermath of the announcement, Manolo Falco, the London-based co-head of Citigroup’s investment bank, was transferred to a role dealing with its biggest clients. Tyler Dickson was promoted to sole head of its investment banking unit.
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