THE CITI SLASHER CUTTING 53K JOBS
By DAN MANGAN and PETER HOLLEY
Posted: 4:37 am
November 18, 2008
Citigroup will slash a staggering 53,000 jobs - the second-largest cut ever by a US company - because of punishing losses and a reeling economy, the financial giant announced yesterday.
The massive job cuts, which will shrink New York-based Citigroup's workforce by about 15 percent, comes just two months after the banking behemoth finished trimming 23,000 positions.
About half of the new cuts will come through layoffs and attrition. The other half will come from the sale of units.
There was no indication how many Citigroup jobs in the New York area will be eliminated. The worldwide cuts, which will leave the company with about 300,000 workers, are expected to begin in early 2009.
Citigroup has lost $20.3 billion over the past year.
To compensate, Citigroup said it will cut expenses by as much as 20 percent in 2009, when it expects to spend about $50 billion, as opposed to the nearly $62 billion it spent over the past year. The firm has tapped into $25 billion in capital offered by the US government's financial rescue.
CEO Vikram Pandit yesterday told employees that 2009 will be "difficult" for customers, but said Citigroup has been "getting fit" to deal with more austere times.
New York Attorney General Andrew Cuomo criticized Citigroup for not committing to eliminating year-end bonuses for top executives, as the Goldman Sachs firm announced Sunday.
Citigroup chairman Win Bischoff did not rule out eliminating bonuses.
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