Investment banking jobs get the chop at Goldman and Citigroup

The affects of the credit crisis are still being felt, with even those least affected having to lay off staff in the coming months. Most job cuts at Goldman Sachs and Citigroup are going to be in the investment banking areas, who are the most affected by the continuing struggles of the credit market.

Analysts have predicted that both Goldman Sachs and Citigroup are about to cut 10% of their total working staff, each, with most of that tally coming from mergers and acquisition advice and corporate fundraisings divisions for Sachs, and the investment banking division for Citigroup.

That could be a total of 6,500 jobs to be cut from Citigroup, which is the largest bank in the US, after last year they dropped a whopping total of 21,000 employees.

The bank had to reduce their headcount further after a shocking $15.2 billion (£7.7 billion) write down in the first quarter, leading to the bank tallying a first quarter loss of $5.11 billion, and $33 billion since the onset of the credit crisis last year.

There has been a lot of staff either being moved from the US and Europe to Asia or the Middle East, as well as many people being requested to leave the bank, at Goldman this year, with the total employees dropping by around 400 so far this year.

The estimated job losses in London doesn’t fair much better, with the Centre for Economics and Business Research releasing findings that suggest up to 11,000 job losses this year, and 8,200 next year.

Europe hasn’t been as adversely affected by the fallout in the credit market, however they are still noticing the pinch, as such job cuts have been, and will continue to be taking place, at a somewhat slower pace that US banks are currently implementing.

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