Citigroup asked two equities staffers in Japan to reconsider their resignations, the latest sign of an intensifying battle for talent in one of the world’s tightest markets for finance workers.

The New York-based lender tried to convince Ken Yoshikawa, a senior executive of equity distribution in Tokyo, and his junior colleague Rick Soo, to stay after they tendered resignations, people familiar with the matter said, asking not to be identified discussing private details. Yoshikawa is expected to remain at the firm and it’s unclear if Soo will end up staying too, the people said, adding that the situation is fluid.

The negotiations highlight the challenges facing global and local financial firms in Japan to retain top staff and attract newcomers. The nation’s booming markets and rising foreign investment — fueled by returning inflation and relatively low borrowing costs — are driving a surge in demand for finance roles amid a low jobless rate that underscores the limits of the labor pool.

In extreme cases, some companies have refused to accept resignations, leaving staff in limbo. A culture that has historically prized loyalty adds to the difficulty of leaving a company, and has even led to the rise of resignation agencies, where people pay to help them quit.

Meanwhile, facing a shrinking pool of qualified candidates and growing demand for specialized skills, companies are rolling out aggressive recruitment drives, and raising pay packages to levels not seen before.

"Japan is a key market for Citi across our Markets franchise and we continue to invest and grow the business to support clients,” said a spokesperson for the bank.

Soo declined to comment, while Yoshikawa didn’t reply to messages sent to him on LinkedIn.

The moves come amid a series of changes in Citigroup’s equities business, including leadership shifts in Japan and the earlier overhaul of its Asia sales-trading model after regulatory scrutiny.

In March, the bank reshuffled some of its senior roles in Tokyo, naming Akira Hoshino as its markets head for Japan. Kazuhiro Nakajima became head of markets sales.

Citi posted markets revenue of $5.9 billion in the second quarter, surpassing estimates, as both fixed income as well as equities sales and trading outperformed.

In Japan, net income at its securities unit fell 33% in 2024 from a year ago. Its headcount in the country is one of the biggest among global banks.