Citigroup starts jobs cull that will impact London

The ax is falling again at the big banks as Citigroup, the New York-based bank starts to cut hundreds of trading jobs.

Citi will make headcount cuts across its fixed-income and stock-trading business throughout the year, including at least 100 cuts in its equities unit which makes up a 10th of the division.

About 80 of the trading layoffs are expected to be in London, 25 of which have been cut this week, according to people with knowledge of the matter.

The cuts spark worries that an industry wide slump may pose more permanent challenges, going beyond trade-war tensions and Federal Reserve policy changes.

Trading-related units, which historically account for a large of bank profits, are down due to low levels of client activity and low interest rates.

The jobs cull is consistent with a trend in downsizing at major banks, indicating more trouble on the horizon for investment banking.

Banks across Wall Street posted an 8 per cent fall in the second -quarter following a 14 per cent slide in the first-quarter, this is shaping up to be the worst first-half for major banks. Citi was a relatively good performer, but still suffered a 5 per cent slip in fixed income trading year on year.

The move comes just weeks after Deutsche Bank announced 18,000 job cuts in a radical transformation.

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