Citigroup is to cut about 400 of its investment banking staff in the UK as part of its plan to reduce the headcount by 4,200 globally. The reductions will probably be spread across Citi’s business lines and will not be concentrated in the fixed-income operations that contributed to the group’s $9.8bn Q4 loss unveiled last week. Citi reviews its staff in January with a view to weeding out the weakest 5% and filling their positions with stronger external recruits. But the process this year would see only a minority of departures being replaced, say people familiar with Citi’s plans. The bank employs about 11,000 in the UK. The investment banking industry has seen a steady stream of departures this year, which is expected to accelerate in coming months amid sudden deterioration in market sentiment.
