CNBC: Citigroup Could Cut 30,000 Jobs Over Next Eighteen Months
According to CNBC, Citigroup's job cuts could reach 30,000 or more over the next year and a half because of increasing write-downs from sub-prime-related debt.
The layoffs would exceed the previously reported 24,000 job cuts that had been expected at the banking giant.
Chief Executive Vikram S. Pandit is currently conducting a massive cost review and could cut as much as 10 percent of the bank's workforce of 370,000, according to people familiar with the situation.
In the past, Citigroup would lay off people and then hire them back as consultants. But with more bad-debt write-downs looming, Pandit wants to make the cuts permanent, sources say.
"They are asking managers if you have a task that takes six people, implement a plan where it only takes four people to complete," said one manager.
The cuts are expected to occur over the next 12-18 months.
Published on March 4, 2008
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