Citigroup to Cut 50,000 More Jobs

Struggling under debt, Citi slashes staff

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Citigroup Inc. is cutting more than 50,000 more employees in the coming quarters as the banking giant struggles after suffering major losses from deteriorating debt.

The New York-based bank, which has already reduced its assets by about 20% since the first quarter of the year, also plans to trim expenses by 19% in 2009 from third-quarter levels, to $50 billion.

The plans, announced on the company’s Web site, were discussed by CEO Vikram Pandit at the company’s town hall meeting in New York today.

The company said it is shrinking its work force by 20% from its 2007 peak of 375,000. The company had already announced in October that it was eliminating about 22,000 jobs from that level. When all cuts are implemented, Citigroup total workforce will be about 300,000 employees.

About half of the expected work force reductions will come from business sales and the other half of the reductions will come from layoffs and attrition, a spokesman said.

In late-day trading, Citigroup shares were down almost 3.5% to $9.19. Overall, U.S. shares were lower, with the New York Stock Exchange down 83 points to 8414.31.

Citigroup had previously announced that it was selling Citi Global Services and its German retail banking business, accounting for about 18,000 jobs. Citi is planning to sell other businesses, too.

The New York-based bank has posted four straight quarterly losses, including a loss of $2.8 billion during the third quarter.

Citigroup’s cuts are the second largest job-cut announcement on record, according to outplacement consultancy Challenger, Gray & Christmas Inc., which has tracked downsizing announcements daily since 1993. The Citigroup announcement matches a job-cut announcement affecting 50,000 workers made by Sears, Roebuck & Co. in 1993.

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  • COY

    I ALSO HEARD THAT CITCORP NO LONGER WRITES MORTGAGES ANY MORE:(