Citigroup to Eliminate 4,500 Jobs, Take $400 Million Charge |
| BusinessWeek - Dec 7, 2011 |
Citigroup Inc. Chief Executive Officer Vikram Pandit will cut about 4,500 jobs in coming quarters as he seeks to reduce costs amid slumping revenue and “unprecedented” market conditions.
The lender will take a fourth-quarter pretax charge of about $400 million tied to the reductions, including severance, Pandit said yesterday at an investor conference in New York. Citigroup, the third-biggest U.S. bank by assets, employed about 267,000 people as of Sept. 30, according to a filing.
“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,” said Pandit, 54. “These trends will likely significantly affect the competitive landscape in the coming years.”
Pandit is cutting staff as the European sovereign-debt crisis persists and banks prepare for regulations on minimum capital levels to take effect, threatening revenue from trading and investment banking. Citigroup said in September it would limit hiring to “critical” jobs to control costs.
Read Full Article from BusinessWeek
- Posted: 2011-12-07 11:35:18
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