Citigroup 'to cut 10,000 more jobs'

14 November 2008

Citigroup is to follow up on the 11,000 jobs it cut in the third quarter by culling at least 10,000 more positions in divisions including investment banking, it has been reported.

Sources close to the financial services group told the Wall Street Journal (WSJ) that managers have been instructed by chief executive Vikran Pandit to cut their employee compensation budgets by "at least 25 per cent", Reuters stated.

In the year to date, Citigroup has reduced its workforce by around 23,000 people, including the third quarter losses, the news site said.

By next year, sources told the WSJ, it aims to shrink its worldwide employee base to around 290,000 people from the 352,000 it had at the end of September.

Citigroup spokeswoman Christina Pretto told the newspaper: "We will continue to carefully manage our head count levels as we re-engineer the company in line with our stated goal and market realities."

Earlier this year, Citigroup was one of nine US banks covered by the government's $250 billion capital injection and financial support plan.

It manages around 200 million customer accounts worldwide.



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