CitiGroup Plans to Cut Another 52,000 Jobs, Total to Hit 75,000
Citigroup has announced plans for about 52,000 new job cuts, on top of 23,000 cuts already made this year.
Citigroup said the 75,000 job cuts represented a reduction of about 20% of its staff, leaving it with 300,000 jobs worldwide "in the near term".
The cuts will come from redundancies, the sale of units and natural wastage, the bank said.
Citigroup has lost more than $20 billion in the past year because of the global financial crisis.
It has reported four straight quarterly losses and some analysts believe the bank will not make a profit again until 2010.
Underlying business remains strong and revenues have been stable," the bank said.
Citigroup also said its capital position was "very strong".
The bank expects its expenses to be down 20% from peak levels, to about $50 billion in 2009, after the job cuts have taken effect.
"Certainly [the job cuts] will fall particularly heavily on London and New York," Citigroup chairman Win Bischoff said at a business forum in Dubai.
Citigroup's chief executive Vikram Pandit has come under pressure from critics who have doubted his ability to turn around the company and weather the financial crisis.
Published on November 17, 2008
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