"Citigroup has announced it will slash 50,000 jobs worldwide as the US banking giant tightens its belt further to cope with a global financial crisis and heavy losses.
The company, in a document for a presentation to employees by chief executive Vikram Pandit, said that the "headcount expected to be down 20 percent in the near-term from peak levels."
At that peak, in the 2007 fourth quarter, Citigroup had a global workforce of 375,000 employees, according to the online document. By the end of September the workforce had been trimmed to 352,000; the additional job cuts announced would pare it to approximately 300,000.
Citigroup said its capital position was "very strong" and it had made a "significant reduction in risky assets."
Citigroup, whose shares have been battered amid the credit crisis, said it was "getting fit — fast!" and would reduce its overall expenses by 20 percent in the short term from peak levels. The cost-cutting measures would bring spending to approximately US$50-52 billion in 2009.
The further belt-tightening was signaled Friday when the bank announced it would make additional job cuts and that Pandit and other key executives had bought 1.3 million shares to show confidence in the company.
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http://money.ninemsn.com.au/article.aspx?id=667232&rss=yes
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