More job cuts may be needed, says Citi
Citigroup said it may make further cuts in its securities and banking unit in 2012 if revenue does not pick up meaningfully, as the prospect of more lay-offs looms large over investment banks globally.
The US bank, which said last week that job cuts already underway across all its businesses would total about 5,000, invested just under £641m in its investment bank last year, as it rebuilt the unit after the 2008 financial crisis.
But chief financial officer John Gerspach told investors that revenues in certain parts of securities and banking in 2011 had been “disappointing and unacceptable” and pointed to more possible cuts.
“While we are strategically committed to securities and banking, we are not oblivious to the fact that our cost structure cannot be justified by our current revenues,” Mr Gerspach said.