5 Banks Ready to Reduce Staff: Citigroup (NYSE:C), Morgan Stanley (NYSE:MS), Deutsche Bank (NYSE:DB), Goldman Sachs Group (NYSE:GS) and Bank of America (NYSE:BAC)


Citigroup Inc. (NYSE:C) and Morgan Stanley (NYSE:MS) are included in the list of Wall Street firms planning to lay off workers, as first-half revenues moved down for a third straight year.

Morgan Stanley is expected to cut 700 jobs in the second half, which would put the yearly total at 4,000, according to Chief Financial Officer Ruth Porat. Deutsche Bank AG (NYSE:DB), Europe’s largest bank by assets, is taking into account nearly1,000 staff reductions at its investment bank, while Citi will cut about 350 jobs, according to sources close to the matter.

[article_detail_ad_1]The third-largest U.S. bank is preparing the layoffs in its securities division, which includes investment banking and trading. The firm had earlier announced plans to cut 1,200 jobs from the unit.

Goldman Sachs Group, Inc. (NYSE:GS) plans to control expenses and has set a target to slice $500 million of expenses in 2012, mostly from compensation, after positing their worst first-half revenue and net income in seven years. Chief Financial Officer David A. Viniar said the bank’s headcount would include a large amount of junior employees by the end of the year.

The Charlotte, North Carolina-based Bank of America Corp (NYSE:BAC) prepares to cut $3 billion in annual expenses from its investment-banking, trading and wealth-management units. The second-biggest U.S. bank in terms of assets did not reveal how many jobs it plans to eliminate.

Revenue from trading and investment-banking businesses at the five biggest Wall Street firms dropped 18 percent in the second quarter as the firms dealing and trading volume retreated along with fears that Greece would depart from the euro and the region’s sovereign-debt woes would put other countries such as Spain at risk. The fall raised questions about whether banks could reduce costs to get better returns.


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