Citigroup may cut 3,000 jobs

The bank says it's aiming for $2 billion in ongoing efficiency savings annually.

By TheStreet Staff Nov 16, 2011 12:42PM

By Shanthi Bharatwaj, TheStreetTheStreet

 

Citigroup (C) plans to cut about 3,000 jobs, or 1% of its work force, as part of a broader expense-reduction plan, sources say.

 

The details are still being worked out, and the final number could be higher. People familiar with the staffing plans also noted that some of the actions have already been communicated and are a result of re-engineering and divestitures.

 

Post continues below.

The layoffs were first reported by The Wall Street Journal. According to the report, the bank might cut as many as 900 jobs from its securities and banking division as persistent volatility in markets takes a toll on client activity.

 

"As part of our ongoing efforts to control expenses, we are making targeted headcount reductions in certain businesses and functions across Citi," said Shannon Bell, a spokeswoman for Citigroup. She declined to comment on the numbers being speculated.

 

Citigroup shed thousands of jobs in 2008 and 2009 after the financial crisis. Since then its work force has leveled off and stood at about 267,000, as of the third quarter of 2011.

 

Analysts have worried about Citigroup's expenses, which have climbed 8% in the first three quarters of 2011. The bank remains in investment mode in emerging markets. It recently achieved operating leverage in Asia and expects its operations in Latin America to turn profitable in the fourth quarter.

 

Forex fluctuations and legal expenses have also led to a rise in expenses.

 

The bank has said it is targeting $2 billion in ongoing efficiency savings annually.

 

Related Articles

0Comments

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

STOCK SCOUTER

StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

114
114 rated 1
278
278 rated 2
474
474 rated 3
641
641 rated 4
639
639 rated 5
663
663 rated 6
640
640 rated 7
499
499 rated 8
284
284 rated 9
122
122 rated 10
12345678910

Top Picks

SYMBOLNAMERATING
COPCONOCOPHILLIPS9
TAT&T Inc9
VZVERIZON COMMUNICATIONS9
KOGKODIAK OIL & GAS Corp9
CVXCHEVRON CORPORATION8
More

VIDEO ON MSN MONEY

ABOUT

Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.

Contributors include professional investors and journalists affiliated with MSN Money.

Follow us on Twitter @topstocksmsn.