Citi is reducing the time it takes for investment banking analysts to be promoted to associate in order to attract and retain top talent in a highly competitive job market, according to reports.

Private equity firms are actively poaching junior bankers from Wall Street. According to an internal memo, the change takes effect immediately, and Citi has also eliminated fixed-term contracts for affected employees in North America.

David Friedland, co-head of Citi's North American investment banking division, said in a Bloomberg interview on Monday (October 5) that Citi will shorten the analyst stage for junior investment banking employees from three years to two years, accelerating their career progression while aligning Citi's arrangements with those of some competitors.

Under the new arrangement, current third-year analysts will be promoted to associate on January 1, 2027, subject to performance. The expected timeline for promotion from analyst to vice president (VP) has also been shortened from six and a half years to five and a half years.

By cutting the analyst period to two years, shorter than JPMorgan's two and a half years, Citi signals that banks are shifting from "tightening discipline" to "accelerating promotions" in the battle for talent.