Agencies
New York
US banking giants continued to shed employees in the first quarter, with Citigroup seeing the biggest drop.
Headcount at Citi declined by 2,000 employees after the third-largest US lender completed a sweeping reorganization aimed at improving profits and reducing managementlayers.
Headcount at Bank of America, Wells Fargo and PNC Financial declined by about 2,000 jobs combined in the three months ended March 31 compared with the previous quarter.
Banks are under pressure to control costs due to the uncertain economic outlook. While investors are still expecting the Federal Reserve to tame inflation while avoiding a major economic slowdown, expectations remain in flux about the potential for interest-rate cuts later this year.
Citi’s reductions were part of a total 7,000 job cuts that will be reported in upcoming quarterly earnings as employees complete their notice periods, its Chief Financial Officer Mark Mason told reporters on Friday.
The layoffs were part of a broader goal to reduce Citi’s staffing by 20,000 over the next two years.
Industry executives acknowledged the challenges in navigating the changing rate environment. Analysts said higher funding costs, contracting net interest margins and uneven trading results were likely to keep banks cautious.
