Citigroup Inc recently announced that it will be cutting about 2,000 more investment banking and trading jobs. This news comes as a result of the bank experiencing a record quarterly loss brought on by the nation’s subprime mortgage and credit problems. It is Citigroup’s hope that by drastically reducing their staff number’s they will be able to increase profit and remain competitive. A majority of the positions lost will be New York jobs.

The 2,000 jobs awaiting the ax are in addition to the 4,200 announced in January. The majority of the positions that Citigroup already did away with this year were also in investment banking and trading.

According to Bill Hackney, who oversees about $8.9 billion at Atlanta Capital Management Co., “Employment at large financial services firms like Citigroup could easily shrink 10 to 15 percent in the next five years.” At this point there is no longer a question as to whether or not New York jobs in banking will be lost. The important question now is “How many?”. Only time will tell the severity of the hit the financial services industry will take before the economy recovers.

The New York job market will not be the only one effected by Citigroup’s need to scale back staff numbers. They are also expected to do away with positions in London and various other European markets and Asia. Considering the current state of stocks, traders are more at risk of losing their jobs than anyone else with the bank. Since the middle of 2007, U.S. financial services providers have done away with more than 60,000 jobs due to the nation’s struggling subprime mortgage market and credit issues.

This entry was posted on Monday, March 24th, 2008 at 12:37 pm and is filed under Job Search. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.