Citigroup and Barclays have started jobs in their investment-banking operations, following other major banks in responding to declining business revenue.
Several positions at Citigroup in New York were eliminated this week.
This comes as cuts at London-based Barclays, which are expected to total around 200, have begun, according to sources.
The dramatic slowdown in investment banking has harmed US banks, as the volatility that fueled trading gains has weighed on capital markets and asset management.
Citigroup’s third-quarter investment-banking fees fell 64 percent, while Barclays’ fell 45 percent.
Underperformers are regularly weeded out by Wall Street banks ahead of the annual bonus season, which occurs at the beginning of the year.
The move represents a U-turn for Citigroup, which has been adding talent as it seeks to strengthen its position in certain sectors, such as healthcare and technology.
Morgan Stanley is also considering cutting about 50 investment banking jobs in the Asia-Pacific region, according to sources.
This follows a similar move in September by Goldman Sachs Group which is undertaking its largest round of job cuts since the outbreak began.
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Goldman announced in July that it would slow hiring and reinstate annual performance reviews in an effort to cut costs in a “challenging operating environment.”
The bad news on the job front comes after two years of skyrocketing profits and bonuses, fueled in part by massive government stimulus programs aimed at keeping the economy from collapsing during the pandemic.
In the third quarter, the largest US banks continued to expand their workforces.