Citigroup may cut over 17,000 jobs
By Our Corporate Bureau | 10 Apr 2007
Mumbai: Citigroup Inc, the biggest US bank, is planning to cut its workforce by five per cent worldwide, or nearly 17,000 jobs, as it sets out on an overhaul of the financial institution, reports citing its chief executive Charles O. Prince III said.
The New York-based banking group may close branches, move some of its 337,000 full and part-time staff to lower-cost locations and computerise operations to save about $2 billion a year, sources said.
The reductions follow a three-month review by chief operating officer Robert Druskin.
Citigroup's consumer and investment banking businesses are expected to bear the brunt of the job cuts.
In a memo to employees, Prince said the bank plans to consolidate some back-office, middle-office and corporate functions, move some work to lower-cost areas, and make its technology platforms more efficient.
Prince is under pressure from shareholders as the Citigroup stock is trailing competitors and expenses increased twice as fast as revenue last year. The bank probably will report next week that first-quarter earnings rose less than 1 per cent to $1.09 a share.
Business-television channel CNBC has reported that Citigroup's cuts could affect 45,000 people.
Citigroup shares have gained 13 per cent, or the equivalent of 3.6 per cent a year, since the 57-year-old Prince took over as CEO in October 2003. Bank of America Corp. and JPMorgan Chase & Co. have both advanced more than 30 per cent in the same period. Citigroup's stock rose 1 cent to $51.58 in New York Stock Exchange composite trading.
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