Citigroup Plans to Cut 4,500 Jobs

Citigroup Plans to Cut 4,500 Jobs

Citigroup Inc. (C) Chief Executive Officer Vikram Pandit said the bank will cut
about 4,500 jobs in coming quarters as he seeks to trim costs amid slumping revenue.

Citigroup will take a charge of about $400 million in the fourth quarter tied to the reductions, including severance, Pandit, 54, said today during an investor conference in New York. Citigroup, the third-biggest U.S. lender by assets, employed about 267,000 people at the end of the third quarter, according to a quarterly filing.

The bank said in September it would limit hiring only to “critical” jobs to control costs and boost revenue as regulations on minimum capital levels take effect. Financial firms worldwide have cut more than 200,000 jobs this year, up from about 58,000 last year and 174,000 in 2009, according to data compiled by Bloomberg.

“Financial services faces an extremely challenging operating environment with an unprecedented combination of market uncertainty, sustained economic weakness in the developed economies and the most substantial regulatory changes we have seen in our lifetimes,” Pandit said. “These trends will likely significantly affect the competitive landscape in the coming years.”

Citigroup posted a 74 percent increase in third-quarter profit, aided by a $1.9 billion accounting gain that softened the impact of lower trading and investment-banking revenue.

Citigroup slid 0.3 percent to $29.75 today in New York and have dropped 37 percent this year.

source: bloomberg.com