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Citigroup confirms 25,000 staff to be axed

Citigroup has confirmed that it is to cut 25,000 jobs as part of a restructuring program to reduce operating costs.

It had been speculated in initial reports that up to 45,000 staff were to be released.

However, chief executive and chairman Charles O Prince yesterday announced that 17,000 jobs are to be axed, while a further 9,500 will be relocated from high-rent locations.

The cuts, which follow criticism of Mr Prince from shareholders over the banking giant's performance, mean that eight per cent of Citigroup's 327,000-strong workforce will be affected.

Commenting on his decision, Mr Prince said: "Ultimately these changes will streamline Citi and make us leaner and, more efficient, and better able to take advantage of high revenue opportunities."

It is thought that the cuts will save the company as much as $4.6 billion, although costs accruing from redundancy could reach as high as $1.38 billion.

Mr Prince did not, however, reveal exactly where the job cuts would occur, but did say that 57 per cent will originate outside the company's domestic American market.