Citigroup starts senior hiring amid cuts Citigroup has hired one of Europe's best-known dealmakers as the US group seeks to add a string of top investment bankers even as it is sharply reducing junior staff. Luigi de Vecchi, a former Credit Suisse and Goldman Sachs banker, has been appointed as chairman for corporate and investment banking in continental Europe, the US bank will announce on Monday. The advisory banker resigned as global co-head of the investment banking department at Credit Suisse last year. At Citi, he will be based in Milan. The hiring marks the starting shot for Citi's drive to intensify its European franchise by bringing in up to 10 senior bankers. It comes as the bank is in the final stages of cutting its investment banking staff across the region to 350 from 500 as it seeks to dismantle overlaps with the corporate bank and between sector and country bankers. We have taken a lot of cost out of the business. The final part of the strategy will be to invest in upgrading our top investment banking talent," said Manolo Falco, who with James Bardrick co-heads corporate and investment banking in Europe, the Middle East and Africa. The staff cuts, which already started almost a year ago, will see Citi centralising more of its investment banking operations in London. In all but the largest countries, corporate bankers will act as the main sales force by keeping client relationships and bringing in investment banking advice from London if needed. The move from quantity to quality comes as most investment banks are cutting back staff in Europe to adapt to lower market volumes, shrinking fee levels and tougher regulation. The Wall Street bank's headcount has dropped by 113,000 since 2007 to 262,000 after it was hit hard by the financial crisis and had to be bailed out by the state. Its new chief executive, Mike Corbat, is cutting another 11,000 jobs globally. Europe, the Middle East and Africa encompasses more than half of the 100 countries in which Citi operates and contributes at least a third in assets, profits and revenues to its business. Emea is a perfect proxy for Citi's global business model, given that so many multinational companies are based here. So if you want to transform and improve Citi's corporate and investment banking business, this is a great place to start," Mr Falco said. The plan to hire senior staff is part of an ambition to move into the top five league in Emea investment banking fee tables this year and into the highest three within the next three years. The US bank ranked eighth in the region's investment banking advisory fees in the past year, according to data by Thomson Reuters.