In preparation for its proposed $70 billion merger with Travelers Group, Citicorp has been slashing jobs in its corporate bank. The $330 billion-asset banking company told 50 employees in its U.S. corporate bond group last week that their positions would be eliminated when that business is folded into Travelers' Salomon Smith Barney subsidiary.
The cuts-affecting a third of the bank's high-yield and investment-grade bond staff-are in underwriting, research, trading, and sales, a Citicorp spokeswoman said. "We have been reviewing our business to see where our strengths were, and we decided after taking that review to reduce staff in this unit," the spokeswoman said. The notices were given to workers in person last Wednesday, she added.