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Citigroup likely to cut 15,000 jobs: report

Citigroup likely to cut 15,000 jobs: report
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First Published: Mon, Mar 26 2007. 03 43 PM IST
Updated: Mon, Mar 26 2007. 03 43 PM IST
AFP
Paris: US multinational bank Citigroup may cut 15,000 jobs throughout the world under a restructuring plan to rationalise and reduce overheads, the European edition of the Wall Street Journal reported on Monday.
The plan would generate a restructuring charge of $1 billion, the newspaper said.
The group was working on cutting its workforce of 327,000 by at least 5%. One method being considered was the non-replacement of 30,000-50,000 people who leave the group each year.
The report said: “The stakes are high for Citigroup chief executive Charles Prince as impatience has been mounting inside and outside the company about its fast-rising expenses, sagging profit and languishing stock price.”
Among problems identified by the board were an excessive number of levels in the hierarchy and excessive fixed costs owing to a multiplication of technologies and arrangements for administering transactions.
The group was also considering improving use of its property assets which might involve a move from expensive sites in New York City, for example, to areas where property prices were lower.
In 2006, the group’s operating costs had risen by 15 % to $52 billion. The report said investors and analysts expected the company to reduce this by $2 billion a year.
The report commented that Citigroup was considered a possible bidder for Dutch bank ABN Amro, the target of bid interest by Barclays of Britain.
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First Published: Mon, Mar 26 2007. 03 43 PM IST
More Topics: Corporate News | World Business |