The job cuts, which would equate to 10% of SSB's workforce, are expected to lead to redundancies throughout the organisation and affect executives as senior as managing directors, said a source close to the situation.
The source added that he expects the majority of the cuts to be in the US. When Citigroup announced the programme to cut 3,500 jobs over the next year, the bank said that 2,200 would go in the US.
An SSB spokesman would not comment on cuts in the investment banking division. He reiterated Citigroup's statement since starting jobs cuts in April. "As part of the ongoing strategic review of our firm and given the market reality we are continuing to make targeted reductions throughout the organisation," the spokesman said.
The cuts come despite the fact that Citigroup's corporate and investment banking group has performed well relative to its peers. The division pulled in revenues of $4.34bn (€4.8bn) in the third quarter, down from $4.93bn in the same quarter last year. Market rivals have seen comparable revenues fall 25% or more. So far this year the division has seen revenues fall just 2% on 2000 despite the slowdown in mergers and acquisitions and equity underwriting.