Speaking in New York late on Tuesday, chief executive Vikram Pandit said that the bank has already made $1.4bn in savings this year but needs to respond to slow markets by reducing costs further.
City A.M. understands that the cuts in the Europe, Middle East and Asia (EMEA) region involve six per cent, or 99 staff of its 1,600 capital markets front-office staff being laid off.
That is in addition to cuts in investment banking and mid- or back-office roles, which are said to be in the several hundreds.
Those made redundant will have to clear their desks this week after notices yesterday and today.
They will get at least three months’ pay with potential for more and the possibility of stock options being paid out.
Citi has said the cuts will produce a one-off cost of $400m. They will fall across numerous divisions within capital markets, including equities, fixed income, sales and trading.
Those familiar with the bank said that equities is likely to be hit hardest because it has escaped being cut as much as fixed income so far.
Overall, Citi has about 10,000 staff in London and 267,000 globally, which means the cuts announced on Tuesday amount to two per cent of its headcount, with Europe likely to take larger cuts than others.