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.

 

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