Sunday, June 22, 2008

Report: Citi to Cut 10% of Investment Banking Jobs

by Bill McBride on 6/22/2008 07:14:00 PM

The WSJ is reporting: Citi to Slash Investment Banking Jobs World-Wide

Citigroup ... will dismiss thousands of investment-banking employees world-wide as part of a plan to cut the roughly 65,000-employee group by 10% ...
According to the WSJ the cuts will probably happen tomorrow, with entire trading desks eliminated in New York and other cities.

Update: from the Financial Times: Job fears mount as Goldman sheds staff (hat tip crispy&cole)
... it emerged that Goldman Sachs ... cut staff at its investment banking division last week.

The Wall Street bank is now expected to cut up to 10 per cent of staff in the division that handles mergers and acquisition advice and corporate fundraisings over the course of 2008 ...
The FT article ends with:
“Any bank that says it’s not cutting is lying,” said one industry insider on Sunday. “It’s getting to halfway through the year and everyone can see that business hasn’t picked up.”
It is becoming more clear that the '2nd half recovery' was a mirage - not only for the financial industry, but for the economy in general.