Citigroup plans over 50,000 job cuts

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Citigroup plans over 50,000 job cuts

Karl Flinders

US bank Citigroup plans to cut 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.


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