Citigroup's $400M Q2 Expense Spike: Result of Job Cuts and Reduced Trading Activity, Says CEO
Portfolio Pulse from Vandana Singh
Citigroup CEO Mark Mason announced a $400 million expense spike in Q2 due to job cuts and reduced trading activity. The cuts affected investment banking and trading divisions, with severance costs for 1,600 employees. Trading revenue declined by 20% and investment banking revenue dropped by 25% due to concerns over the debt ceiling.
June 15, 2023 | 11:20 am
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Citigroup's Q2 expenses increased by $400 million due to job cuts and reduced trading activity. Trading revenue declined by 20% and investment banking revenue dropped by 25%.
The $400 million expense spike in Q2 is a direct result of job cuts and reduced trading activity at Citigroup. The decline in trading and investment banking revenues, along with the severance costs for 1,600 employees, will likely have a negative short-term impact on the company's stock price.
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