Citigroup Inc. is preparing to eliminate 900 jobs in its securities and banking division, or about 5% of the unit's world-wide staff, as turmoil in the equity and debt markets erodes revenue, people familiar with the situation said.
The cuts are part of a broader move by Citigroup to curtail expenses. The bank is considering eliminating 3,000 jobs, or around 1% of its work force, the people familiar with the situation said. They cautioned that a head-count reduction for the overall bank hadn't been finalized and could change.
Citigroup cut thousands of jobs during the financial crisis but has been wooing high-profile talent from competitors lately to rebuild market share. As recently as April, Citigroup said it planned to hire 500 bankers and traders over the next two years.
Since then, however, fears over the European debt crisis and new regulations capping bank profits in other once-lucrative areas have altered the outlook.
A Citigroup spokeswoman confirmed that the bank was planning "targeted head-count reductions in certain businesses and functions" across the bank as part of an effort to "control expenses." The bank will join a number of Wall Street rivals in cutting jobs at a time of weakening results.
Citigroup shares have fallen 41% this year. They fell 36 cents, or 1.3%, on Tuesday to $28.02.
This story originally appeared on WSJ.com.