Global banking groups Citigroup and Barclays have begun slashing headcounts across their investment-banking divisions amid dips in revenues witnessed by the business, reported Bloomberg.

Citigroup laid off dozens of employees this week while Barclays has started cutting roles that could ultimately affect nearly 200 people, sources privy to the development told the publication.

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Downturn in investment banking industry has badly impacted the banks in the US, while instability that triggered improvements for trading has weaken capital markets and asset management sector, added the report.

According to a Reuters’ report, Barclays has axed positions in its corporate and investment banking (CIB) arm in the wake of reduced number of deals.

Citigroup, which is based in the US, saw a decline of 64% in its Q3 investment-banking charges, while UK-based Barclays’ investment-banking fee during the same period fell 45%.

Wall Street banks usually eliminate underachievers prior to the yearly bonus season that starts at the beginning of the year.

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However, Citigroup has been recruiting people in a bid to strengthen its footprint in various industries such as health care and technology. The latest development represents a reversal for the bank.

Recently, reports emerged that Morgan Stanley is weighing options to cut approximately 50 investment-banking positions in Asia-Pacific.

Another banking major, Goldman Sachs Group too commenced a similar initiative in September this year.  The moves marked the highest round of layoffs carried out by the bank since the onset of Covid19 pandemic.