Citigroup is expected to cut around 10% of the equity research team in its London-based investment banking arm, Schroder Salomon Smith Barney, in the next few days, including 10 of its top analysts, banking sources said.

Citigroup's latest round of cost-cutting comes as the bank tries to offset the $1.4bn charge that it incurred as a result of its recent settlement with Eliot Spitzer, the New York attorney general, and the damaging effect of falling equity markets.