New York: Citigroup Inc., the biggest U.S. bank, may cut 5% of its workforce, or almost 17,000 jobs, as the company seeks to lower annual expenses by more than $1 bn (Rs4500 crore), according to a source within the company.
The reductions follow a three-month review by COO Robert Druskin. The New York- based company may shut offices, move some of its 337,000 full and part time workers to lower its cost locations and combine computer systems to save about $2 bn (Rs9000 crore) a year, according to Bank of America Securities analyst John McDonald.
The company has been under pressure from shareholders because Citigroup’s stock is trailing competitors and expenses increased twice as fast as revenue last year. The bank probably will report next week that first-quarter earnings rose less than 1 % $1.09 a share, according to the average estimate of analysts surveyed by Bloomberg.
Meanwhile, Citigroup has been in talks to buy New York based hedge fund manager Old Lane LP in an effort to land Vikram Pandit as head of its alternative investments group, which includes private equity and real estate, a person with knowledge of the discussions.