Citigroup Getting Ready to Lay Off Thousands of Investment Bankers

The WSJ has reported on Sunday that Citi is planning to lay off 10% of its worldwide investment banking group, or approximately 6,500 bankers.

The article states that:

"Entire trading desks in New York and other cities are expected to be eliminated. And unlike Citigroup's other recent reductions, this round will feature layoffs of dozens of senior managing directors, the people said."

This is part of a severe shrinking in the financial services sector which we are going to see unfold over the next couple of years. Banks and their employees are going to have to scramble to adjust to a new, more stringent era of lending and lower profitability.