Citigroup job cut to hit 75,000

Citigroup job cut to hit 75,000
US bank 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 $20bn (L13.6bn) 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.

Turnaround plan

“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 $50bn 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.

Shares in Citigroup dropped 4.4% to $9.10 in early trading. They are down almost 70% this year.

Economy in trouble

Citigroup, one of the largest US banks, is one of nine financial institutions benefiting from the US government’s bail-out programme.
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