Bloomberg News

Citigroup Said to Consider 3,000 Job Cuts as Pandit Trims Costs

November 16, 2011

Nov. 16 (Bloomberg) -- Citigroup Inc., the U.S. bank that shook up senior management earlier this month, may cut as many as 3,000 jobs as Chief Executive Officer Vikram Pandit squeezes out costs, said a person familiar with the company’s plans.

The reduction, equal to about 1 percent of the staff, is an estimate and may change, according to the person, who wasn’t authorized to speak publicly about the cuts. Among the jobs eliminated may be 900 from the division that includes the bank’s trading and investment banking operations, the person said. Citigroup, ranked third by assets among U.S. lenders, employed about 267,000 people at the end of the third quarter.

“As part of our ongoing efforts to control expenses, we are making targeted headcount reductions in certain businesses and functions across Citi,” Danielle Romero-Apsilos, a spokeswoman for New York-based Citigroup, said in an e-mailed statement.

Citigroup posted a 74 percent increase in third-quarter profit, aided by a $1.9 billion accounting gain that softened the impact of lower trading and investment-banking revenue. The bank said in September it would limit hiring only to “critical” jobs to control costs and boost revenue as new regulations on minimum capital levels take effect.

The staff cuts were reported earlier by the Wall Street Journal. Citigroup shares dropped 41 percent this year, closing at $28.02 in New York trading.

Pandit, 54, shuffled his top managers on Nov. 4, giving Manuel Medina-Mora added responsibility for global consumer and commercial banking as Mike Corbat became the sole CEO for Europe, the Middle East and Africa. The moves reflect Pandit’s strategy of pursuing more revenue in emerging markets in Asia and Latin America amid sluggish U.S. economic growth while offloading unwanted assets in the Citi Holdings unit.

--Editors: Rick Green, Peter Eichenbaum

To contact the reporter on this story: Donal Griffin in New York at dgriffin10@bloomberg.net

To contact the editor responsible for this story: Rick Green at rgreen18@bloomberg.net


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