Citadel Investment Group’s beleaguered investment banking unit is poised to add some more gloom to the mix with a dozen layoffs, FINalternatives reports.  The cuts will hit the sales and trading group - comprising 5% of the team’s staff.  Earlier this month, the Chicago-based hedge fund giant denied rumors that it planned to close the I-banking division amidst “mass layoffs.”

Instead, Citadel insisted that the securities unit had enjoyed positive trading revenue, following a report in May that investment-banking operations took in just $5.4mn in revenue last year.

Citadel Securities has seen huge turnover among its senior ranks since it was set up, including two heads of the business within 8 months.  Some of the exits reportedly were sparked by disagreements between investment bank leaders and Citadel founder Kenneth Griffin.

Meanwhile, Citadel announced another resignation - James Boyle, co-head of derivatives - who left yesterday after just 1-1/2 years;  he was replaced by Brad Kurtzman, head of equity index trading.  Both Boyle and Kurtzman joined Citadel last spring from Bank of America.   [FINalternatives, 10/21]