Citigroup Inc. has pulled back from physical trading of industrial metals, a move that saw several commodities traders laid off, according to an employment tribunal in London. The decision signals a shift away from hands‑on metal markets, where the bank once maintained a sizable trading desk. Staff cuts reflect a broader reevaluation of the bank’s commodity strategy.

Industrial metals—steel, copper, aluminum—have long been a staple for Citi’s global commodities division, offering exposure to manufacturing demand and inflation hedges. By retracting, the bank may be reallocating capital toward more liquid or higher‑margin sectors. Investors will watch whether this move culls risk exposure or frees resources for growth initiatives outside the volatile physical market.

The tribunal ruling confirms the redundancies were lawful, but it leaves the market to reprice Citi’s footprint in metals trading. Clients who relied on the bank’s physical execution will need alternate providers, while competitors could absorb displaced talent. The episode underscores a broader trend of major banks trimming commodity desks amid regulatory pressure and shifting profit dynamics.