Citi to cut 50,000 jobs, trim expenses by 20%

Citi to cut 50,000 jobs, trim expenses by 20%

New York: Financial services major Citigroup is planning to slash as many as 50,000 jobs in the next five to six months and also intends to reduce costs by 20%, says a media report.

Quoting people close to the company, television channel CNBC on Monday said the number of job cuts may rise as high as 50,000 in order to bring the company’s workforce to about 300,000 worldwide.

“These people say these cuts will occur in a relatively shorter period of time, such as over the next five or six months," CNBC said in a report published on its website.

Further, the report noted that Citi would cut expenses by as much as 20%.

“Citigroup CEO Vikram Pandit plans to make a dramatic statement on Monday morning about major cut-backs in the struggling firm’s workforce aimed at calming market fears that the troubled financial services giant isn’t taking the steps necessary to address its many ills, which include a bloated cost structure...," CNBC said quoting people close to the company.

Further, the report attributing to a person close to the firm said, “The object here is for the people to take notice... The exact number is still a moving target but it will be dramatic."

On Friday, the Wall Street Journal had reported that Citi would be handing out pink slips to at least 10,000 employees.

In October, Citi had posted a net loss of $2.8 billion for the third quarter and said that its head count was cut down by about 11,000 employees during the period.

Meanwhile, in the first three quarters of this year, the company has reduced its workforce by about 23,000 heads.