US bank Citigroup plans tocut its workforce by 52,000 jobs across all businesses
and geographies in the near future.
The news broke today during a
presentation by Citigroup CEO Vikram Pandit, who took over the
reins of the financial services group last December.
Pandit revealed that City would cut 20% of its employees at the
group.
A Citigroup spokeswoman said half of the job cuts will come from
the sale of business units. The company hadearlier announced 18,000
job cuts when
itsold its Global Services unit in India to Tata Consultancy
Services for £300m.
Pandit told the FT earlier this year that it was feasible for
the bank to take 10%, 15% or 20% off its cost base, especially in
ITand operations.
Chris Skinner, CEO at financial services think-tank Balatro,
said Citigroup probably has between 50,000 and 70,000 workers
involved directly or indirectly in IT. "It is not inevitable that
there will be a lot of cuts in IT because a lot will come in the
Citigroup's investment and capital markets businesses."
"But it would not surprise me if it found some cuts in
technology because it is part of its strategy to rationalise IT,"
added Skinner.
Headcount reductions by banks are hitting IT hard. The Royal
Bank of Scotland is expected to make 3,000 job cuts as it comes to
terms with the economic slowdown.Barclays is expected to cut IT
jobs at its FirstPlus loans business as it closes to new business
and HSBC has cut 1,100 jobs in its investment banking division in
September.