New York, Nov 18: Vikram Pandit, the Chief Excecutive of Citigroup Inc on Monday, Nov 17 disclosed company's plan to cut 52,000 jobs by early next year, a dramatic move to restore profitability and bolster a sagging share price.
The job cut will affect about 15 per cent of Citigroup's workforce. More than 23,000 Citi employees will lose job between January and Sept as a result of the economic crisis in United States. Citigroup said it intends to reduce the total head count to less than 3,00,000 in the near term as part of the plan. On Monday, Nov 17 the company said, "The head count is expected to be down 20 per cent in the near term from peak levels."
The firm was severly hit by the ongoing financial crisis in US and incurred huge losses in recent quarters. In the third quarter, Citi had a loss of $2.8 billion. Sources said that the company is planning to slash expenses by 20 per cent from peak levels and save up to $50 billion to $52 billion in 2009.
At the end of the fourth quarter of 2007, the company's head count stood at 3,75,000. In the first three quarters of this year, Citi reduced its workforce by about 23,000 people. Citigroup's cuts are the deepest by any financial services company since the global credit crisis began last year.
Morethan 100,000 jobs have already been lost at the largest banks and brokerages. In Oct, Goldman Sachs Group Inc began cutting 3,200 jobs, while Morgan Stanley said it will cut 10 per cent of the jobs in the unit housing its investment banking operations.