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Citigroup to cut 53,000 after big losses on debt
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NEW YORK - Citigroup Inc. is shedding about 53,000 more employees in the coming quarters as the banking giant struggles to steady itself after suffering massive losses from deteriorating debt.
The New York-based bank, which has already reduced assets by about 20 percent since the first quarter of the year, also plans to trim expenses by 19 percent in 2009 from third-quarter levels, to $50 billion.
The plans, posted on Citi's website, were discussed by CEO Vikram Pandit at the company's town hall meeting in New York on Monday with employees.
The company said it is shrinking its workforce by 20 percent from its 2007 peak of 375,000. The reductions will come from business sales; Citigroup already announced that it was selling Citi Global Services and its German retail banking business, accounting for about 18,000 jobs.
Citi plans to sell other businesses, too, but has not announced them yet, a spokesman said.
Other reductions will come from layoffs and attrition, the spokesman said.
The bank has posted four straight quarterly losses.
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