Additional Securities Job Cuts Planned at Citigroup
The largest US bank, Citigroup, plans further job cuts in its securities operations in an effort to put decrease costs after suffering record quarterly losses due to sub-prime mortgage and credit problems.
These job losses would be in addition to the 4,200 cuts company-wide announced in January by Chief Executive Vikram Pandit, and the 17,000 announced last April by predecessor Charles Prince.
"Each year we identify the bottom 5 percent of performers in the institutional clients group, and some number of these people leave the firm," spokesman Adam Castellani said Thursday. "This year, we will have a larger number of reductions as we continue to strengthen the business and lower our expense base."
The institutional clients group includes investment banking and trading operations, as well as alternative investments, which offers hedge fund and private equity services.
According to the "New York Times", citing people close to the situation, Citigroup plans to lay off 2,000 investment bankers and traders before the end of March. Most cuts will be in New York and London, though other markets in Europe and Asia will be affected, the newspaper said. Traders are more at risk given market conditions, the newspaper said.
The bank declined to confirm the report. Published reports have said Citigroup might cut tens of thousands of jobs. Pandit has been reviewing the bank's businesses worldwide to explore ways to boost profitability and efficiency.
In the fourth quarter, New York-based Citigroup suffered a $9.83 billion loss, hurt by $18.1 billion of write-downs largely tied to sub-prime mortgages and related securities.
Published on March 20, 2008
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