The megabank will eliminate 53,000 jobs, Citi

[seemslikeadream]

http://www.forbes.com/markets/equities/2008/11/17/citigroup-layoffs-downsize-markets-equity-cx_md_1117markets12.html


Another Ax Swings At Citi
Maurna Desmond, 11.17.08, 10:30 AM EST
The megabank will eliminate 53,000 jobs, reducing its workforce by 20% from its 2007 year-end peak.


Citigroup is cutting more fat than expected to get through the credit crunch.

At a so-called town hall meeting in New York on Monday morning, Citigroup (nyse: C - news - people ) Chief Executive Vikram Pandit told employees that 53,000 jobs would be cut by the end of the first quarter. The number of layoffs was a jump from earlier estimates being tossed around as late as Friday when Pandit tried to ease employee anxiety while calling for greater efficiency during tight times. (See "At Citi, Pandit Calls For Calm”)

Investors weren't assured by the payroll contraction. New York-based Citigroup fell 3.8%, or 33 cents, to $9.19 during morning trading, leaving its shares at a 73.1% discount from their year ago price.

Citi has been under pressure to perform after posting four consecutive quarterly losses with a combined deficit of more than $20.0 billion and losing a high-profile struggle with Wells Fargo (nyse: WFC - news - people ) to acquire Wachovia (nyse: WB - news - people ).

Its rivals, JP Morgan Chase (nyse: JPM - news - people ) and Bank of America (nyse: BAC - news - people ), have managed to stay out of the red and strategically expand by swallowing weaker financial outfits. (See "Watching Wall Street's Shotgun Weddings")

Citi said its total headcount would be reduced by 20.0% from its peak of 375,000 at the end of 2007. In October, Citigroup announced that 22,000 jobs were being cut from those levels. Investors and analysts had speculated that 10.0%, or 35,000, jobs would be cut leading up to Monday’s announcement.

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1. Only that much?

I figured it would be last half their workforce since they no longer would be able to whip up half-baked sub-primes to spin off to other unsuspecting fools :shrug: