Citigroup is set to reduce the size of workforce by at least 50 people in the Europe, Middle East and Africa (EMEA) region, Reuters has reported citing two people familiar with the matter.

The move comes against the backdrop of a slowdown in dealmaking activities, the war in Ukraine and rising interest rates and high inflation.

It will impact employees mostly engaged in director roles, while some managing directors will also leave the bank, according to one of the sources.

The global banking giant refused to give details of the job cuts.

Currently, the bank has nearly 6,000 employees across its banking, capital markets and advisory business throughout the globe.

Revenues from Citi’s investment banking unit reduced by more than a fifth in the Q3 2022 compared to the preceding three months. The unit’s year-on-year revenues also slipped 64%.

The latest development comes close on the heels of a Bloomberg report that said that Citigroup started axing jobs across its investment-banking division as the business failed to make profit.

Last week, the bank fired dozens of its employees.

Many American banks are severely affected by a slump in the investment banking sector. Instability in trading has also deteriorated capital markets and asset management business, as per the report.

Citi’s rival Barclays has started laying off employees. The cuts may eventually affect around 200 people, sources with knowledge of the development told the agency.