Citigroup is drawing up plans to eliminate about 4,500 jobs, or 1.5 percent of its global work force of 267,000. This impediment is certain as the US financial major seeks to trim costs in a bleak global economic environment. The bank will take a $400 million charge in the fourth quarter as a result. The giants CEO Vikram Pandit disclosed the job cuts at an investor conference Tuesday.
The job cutting shall commence this quarter and should be completed over the next few quarters across the group says Mr. Vikram. He added, `Financial services face an extremely challenging operating environment with an unprecedented combination of market uncertainty, sustained economic weakness in the developed economies and the most substantial regulatory changes we have seen in our lifetime.’
He also confirmed that, these trends may significantly affect the competitive landscape in the coming years. While most of the job losses will be in Citi's back-office and investment banking operations, almost every segment of Citi's business will see a workforce reduction. He also added that a variety of measures are adopted to hedge the losses in the growing economic crisis.
