In order to focus on its major clients, Citigroup Inc. (C) has conducted a few layoffs, per a Bloomberg report. The banking giant has eliminated at least five bond salesmen, four of them were engaged in selling debt to mid-size investment firms.
The four employees were part of a team that was focused on smaller money-management firms. Notably the team was dissolved last year. The laid off employees are Michael Tofias, a managing director, directors – Lee Peyser and Paul Giroux and a vice president, Daniel Beiley. The bank also dismissed a director in institutional credit sales, Nancy Wilson Brothers. Four of the five salesmen eliminated have been associated with Citigroup for approximately a decade.
Citigroup seems to serve an effective client base, as recently Citigroup’s co-president and head of the institutional clients group Jamie Forese revealed that the company has trimmed down its clients to about 10,000.
The latest move by the Wall Street banking giant seems to be in line with its several strategic initiatives. Recently, it came in to light that the company is set to remodel its U.S. branches with greater focus on technology while simultaneously reducing the size of its branch locations. (Read more: Citigroup to Revamp Branches with Improvised Technology).
We remain encouraged as a number of restructuring initiatives by the company are underway to strengthen its top line. Also, the company is working on several internal issues including its capital plan and the gradual resolution of legal overhangs.
Currently, Citigroup carries a Zacks Rank # 3 (Hold). Some better-ranked stocks in the finance space include Western Alliance Bancorporation (WAL), Middleburg Financial Corporation (MBRG) and CNO Financial Group, Inc. (CNO). All these stocks sport a Zacks Rank #1 (Strong Buy).
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