Citadel Plans I-Bank Layoffs, Derivatives Co-Head Resigns

Oct 21 2010 | 5:01am ET

Citadel Investment Group’s beleaguered investment banking unit is poised to add some more gloom to the mix with a dozen layoffs.

The cuts will come in Citadel Securities’ sales and trading group, amounting to roughly 5% of the team’s staff, Bloomberg News reportCis. Earlier this month, the Chicago-based hedge fund giant denied rumors that it planned to close the I-banking division amidst “mass layoffs.”

Citadel insisted at the time that Citadel Securities had enjoyed positive trading revenue, following a report in May that investment-banking operations took in just $5.4 million in revenue last year.

Citadel Securities has seen a huge amount of turnover in its senior ranks since it was set up, including two heads of the business within eight months, among other high-level departures. At least some of the exits were reportedly sparked by disagreements between the I-bank’s leaders and Citadel founder Kenneth Griffin.

Meanwhile, Citadel announced another resignation, that of James Boyle, co-head of derivatives. Boyle left the firm yesterday after just a year-and-a-half, and was replaced by Brad Kurtzman, head of equity index trading. Both Boyle and Kurtzman joined Citadel last spring from Bank of America.

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