Citigroup to shed 53,000 jobs

Published on Monday 17 November 2008 16:03

BANKING giant Citigroup today said it planned to shed 53,000 jobs with losses falling "particularly heavily" in London and New York.

The cut – along with previously announced job losses of around 22,000 – will leave it with a global total of 300,000 employees in the near term.

Citigroup employs around 12,000 people in its UK businesses, the majority in London and Derby, where its online bank Egg is based.

Some of the job losses could be achieved through natural staff turnover.

The company has posted four straight quarterly losses, including a loss of 2.8 billion US dollars (1.9 billion) during the third quarter this year.

Speaking at a business forum in Dubai, United Arab Emirates, Citigroup chairman Win Bischoff said it would be irresponsible for Citi and other companies not to look at staffing in the event of a prolonged economic downturn.

"What all of us have done – and perhaps injudiciously – we've added a lot of people over... this very benign period," he said.

"If there is a reversion to the mean... those job losses will obviously fall particularly heavily on the financial sector," he added.

"Certainly they will fall particularly heavily on London and New York."

Mr Bischoff did not rule out the likelihood that Citi's leaders would go without bonuses this year – a move that would effectively amount to a substantial pay cut for the company's executives.

"Watch this space," he said.

The plans were due to be discussed with employees by chief executive Vikram Pandit at the company's town hall meeting in New York today.

Citigroup said staff numbers were being reduced by 20% from a peak of 375,000 at the end of 2007.

It said it expected its expenses to be down 20% from peak levels once the job cuts have taken effect.

The company also said it planned a "significant reduction in risky assets" going into 2009.

Citigroup had a "very strong" capital position, it added.

Asked about the Citigroup job losses, Prime Minister Gordon Brown's spokesman told reporters: "Obviously we are concerned. Any job losses are a matter for regret.

"The Government stands ready to provide whatever support it can to help people find new jobs."