Investment banking: And so it begins. Again.
Following HSBC and RBS's announcement of major layoffs in their investment banking divisions, London yesterday saw Citi's UK offices start to wave goodbye to a large number of staff.
Citi had already announced that it was to cut headcount in its world-wide operations by as many as 4,500 but the swift implementation in London has taken many by surprise.
The bank is working its way through departments, telling each in turn how many and who it will make redundant.
In part, the Euro crisis is to blame: workloads across the whole sector have plummeted as bond markets have turned to dust. Many have been told to expect bonuses of, or, zero for this year.
It's beginning to look as if they are the lucky ones. Jobs have dried up with very few advertisements appearing and head-hunters being hunted instead of doing the hunting.
The Citi cuts are to be wide ranging: equities, fixed income and advisory functions are being targeted.
Investment banking had suffered in the global financial crisis but some banks had begun to increase headcount - including Citi. Even so, many banks are still running at around three-quarters of their pre-crisis numbers, say City sources.
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