DUBAI/LONDON (Reuters) - Citigroup’s head of technology, media and telecoms in Europe is to leave as part of cost cuts the U.S. bank is making in response to the weak economic climate and due to tougher regulation, sources familiar with the matter told Reuters on Monday.
Daniel Bailey is to leave the bank with immediate effect and his position will be taken on by Citigroup’s European (EMEA) head of M&A, Wilhelm Schulz.
Bailey declined to comment. Citigroup also declined to comment.
Citigroup and other big banks are under pressure from investors to cut costs and scale-back activities in line with lower business volumes and reduced returns in the financial sector since the financial crisis.
The U.S. bank’s new chief executive Michael Corbat, who took the helm on October16, is in the process of reviewing management and executive reporting lines.
Bailey, who joined Citi in 2006 from Morgan Stanley (MS.N), worked on some of the telecoms industry’s biggest deals, including the $183 billion merger of Vodafone (VOD.L) with Mannesman in 2000, the largest corporate merger ever at that time.
Schulz will relinquish his role as co-head of German banking to focus on his new responsibilities but will remain head of German coverage. Stefan Wintels will become sole head of German banking.
Citigroup is also expected to cut bonuses this year by about 10 percent and axe around 150 investment banking jobs by year-end, just under one percent of the 17,000 staff in its investment bank, a person familiar with the matter said.
Additional reporting by David Henry in New York, editing by Sophie Sassard and Jane Merriman