The market is up, the economic indicators are positive and life is happy and good, right? Not at Citigroup and Credit Suisse First Boston.
According to the New York Post, both companies are expected to slash jobs in their investing banking divisions in the coming weeks, and it could be high-level execs who are targeted.
The Post reported in its business pages that CSFB expects to cut its investment-banking division by about five percent, perhaps as early as next month. And Citi could drop people even sooner. According to the story, as many as 50 investment bankers—high-level execs, the story says—could be gone in the coming weeks.
The layoffs might fly in the face of the market of late, but they would not be bucking industry trends. UBS, Morgan Stanley and Bear Stearns are among the other firms who have been shedding their investment-banking personnel of late.
Spokespeople at CSFB and Citi were unavailable for comment.