Layoffs

Some lenders are once again hiring mortgage lenders, but memories of the painful staffing cuts they were forced to make over the past two years remain top of mind.

The job reductions come as the card network focuses on emerging markets, artificial intelligence and other nascent technology over transaction volume.

The Hammond, Louisiana, company, which announced changes to its business strategy, cut 71 jobs and reduced its dividend to 8 cents per share.

The muni market finances the "fabric of our nation, and now, because of Citi's exit, the cost of financing for state and local governments is going to go up," a sell-side source said.

The recent round of terminations comes after the neobank cut 225 employees in January.

Offices impacted are located in Chicago, Cincinnati and Kansas City, a company representative said Wednesday.

The Philadelphia-based company will eliminate an undisclosed number of jobs as part of a plan to refocus on core business lines and markets, CEO Thomas Geisel said.

The layoffs come as the fintech is still working to close the SPAC merger it announced in August 2021.

The bank was already mulling headcount and compensation reductions in early September.

The fintech is also relying more heavily on its bank charter as rising interest rates make selling loans to investors more challenging.