Wall Street banks Citigroup (C) and Barclays (BCS) have announced hundreds of staff cuts as
they struggle with declining revenues and a slowing economy.
New York-based Citigroup has cut 50 trading personnel and dozens of banking roles amid a
slump in initial public offerings (IPOs) and mergers and acquisitions (M&A).
Barclays, which is based in London, England, cut about 200 positions across its U.S. banking
and trading desks in New York as it too navigates a slowing global economy.
Staff reductions on Wall Street had been paused over the past few years amid a boom in deals
activity. However, staff cuts returned this past September when investment bank Goldman
Sachs (GS) announced that it was laying off hundreds of employees as it seeks to cut costs.
The cuts at Wall Street firms come after equity issuance plunged 78% this year through October
as the IPO market remained nearly frozen amid ongoing stock market volatility, according to
industry data.
Debt issuance has also fallen as the U.S. Federal Reserve continues to hike interest rates,
declining 30% through September of this year.
A growing number of bank executives on Wall Street are now predicting that the U.S. and global
economies will enter recessions in 2023.
Among Wall Street banks, Credit Suisse (CS) has announced the biggest staff cuts, cutting
2,700 employees as it aims to eliminate a total of 9,000 positions globally by 2025.
Shares of Citigroup are down 28% this year and trading at $45.36 U.S. Barclays’ stock has
declined 33% on the year and is changing hands at $7.07 U.S. per share.
