Citigroup (NYSE:C) CEO Vikram Pandit is following up on his Nov 4 reshuffle of top management with a reduction in jobs at the bank which may be as large as 1%. At the end of the third quarter, there were about 267,000 people on the bank’s payrolls.
The largest casualties are likely to be the trading and investment banking operations, where almost 900 jobs may be eliminated. “As part of our ongoing efforts to control expenses, we are making targeted headcount reductions in certain businesses and functions across Citi,” Danielle Romero-Apsilos, a spokeswoman for New York-based Citigroup (NYSE:C), said in an e-mailed statement.
The bank stated in September hiring would be limited to only “critical” jobs as it tried to improve revenues while controlling costs. This strategy was imperative due to new regulations specifying minimum capital levels that most big banks are still working to achieve.
Citi is not the only bank using the sword to prune employee expenses. JPMorgan Chase (NYSE:JPM) also announced that they would be cutting their workforce by close to 4 percent and employee compensation by about 28 percent. A number of New York City’s other largest banks – Bank of America (NYSE:BAC), Goldman Sachs (NYSE:GS), HSBC (NYSE:HBC), Barclays (NYSE:BCS), Credit Suisse (NYSE:CS), UBS (NYSE:UBS), Deutsche Bank (NYSE:DB), Royal Bank of Scotland (NYSE:RBS) and Lloyd’s (NYSE:LYG) – have announced plans to fire thousands of workers.
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