Citigroup Inc on Friday said it has slightly trimmed its mortgage workforce, due to an internal streamlining of functions.
After hiring tens of thousands of staff between 2018 and 2020 to handle surging mortgage originations and refinancings driven by low interest rates, the mortgage sector is downsizing.
“Citi has made a small number of staffing reductions within our mortgage team due to internal streamlining of functions,” a Citigroup said in an emailed statement. “The decision to eliminate even a single colleague role is very difficult, especially during these challenging times, and we are doing our best to support each individual by helping them to find new employment opportunities within Citi or outside the firm.”
Rising prices and a rapid increase in mortgage rates have dampened demand for many would-be homebuyers. Mortgage application volume has plummeted by more than 50% this year and US pending home sales in July fell to the lowest level since the start of the pandemic.
Less than 100 positions were affected, according to Bloomberg News, which first reported the layoffs.
“We are doing our best to support each individual by helping them to find new employment opportunities within Citi or outside the firm,” a spokesperson for Citi said in a statement.
In June, JPMorgan Chase & Co started laying off employees in its mortgage business, with more than 1,000 being affected. read more
Wall Street bosses are also in a bind about whether to cut investment bankers or keep them on staff in hopes of a recovery from a brutal first half. read more
Reporting by Nivedita Hazra in Bengaluru; Additional reporting by Juby A. Babu and Shivani Tanna; Editing by Lisa Shumaker
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