Thursday, November 20, 2008
CITI NEVER SLEEPS EVEN ITS EMPLOYEES
Chief Executive Officer Vikram Pandit said the bank will eliminate 52,000 jobs over the next year, twice the target announced last month, as loan losses surge and the economy shrinks.
The reductions, disclosed at a meeting with employees in New York, include 9,100 positions the bank began eliminating in October and about 16,900 announced today. Citigroup will shed a further 26,000 positions through asset sales, 7,900 more than in the previous plan. The total represents 15 percent of Citigroup's workforce of about 352,000.
Pandit, 51, is accelerating cost cuts after the bank's stock price plunged 19 percent last week amid concern a global recession will curb new lending just as more home and credit- card loans are becoming delinquent.
nowUS banking giant Citigroup has been propped up with public loans and guarantees worth hundreds of billions of dollars to try to stabilise the ailing firm
The US Treasury will also pump in a further £13.4bn in return for more preference shares to shore up Citi's finances.
The move lifted London's leading stocks, which bounced back from Friday's five-year low.