Citigroup Readies Job Cuts in Trading, Investment-Banking Units This Week

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from Bloomberg:



Citigroup Readies More Job Cuts Under Pandit's Plan (Update1)

By Bradley Keoun

June 23 (Bloomberg) -- Citigroup Inc. may begin another round of job reductions as soon as this week as part of a plan to cut its trading and investment-banking workforce by 10 percent, said a person with knowledge of the matter.

The largest U.S. bank is about halfway through the 6,000 job cuts at the division signaled in March, said the person, who declined to be identified because Citigroup hasn't disclosed the plans publicly. Citigroup employs about 300,000 people worldwide and has announced more than 13,000 job reductions this year.

Chief Executive Officer Vikram Pandit is lowering costs and shedding assets after the New York-based company reported two straight quarterly losses totaling $15 billion. The world's largest banks and brokerage firms have slashed more than 80,000 jobs since subprime mortgage defaults infected credit markets and led to almost $400 billion of writedowns and losses.

``I see more downsizing to come,'' said Andy Mantel, managing director of Pacific Sun Investment Management Ltd. in Hong Kong. ``Banks need to take precautionary measures.''

Citigroup, whose shares rose 8 cents in early German trading today to $19.38, has disclosed plans to eliminate more jobs during the past year than any other financial institution, according to data compiled by Bloomberg. UBS AG, Lehman Brothers Holdings Inc. and Merrill Lynch & Co. are among the companies to announce more than 5,000 job reductions. .......(more)

The complete piece is at: http://www.bloomberg.com/apps/news?pid=20601087&sid=a_pEPYu2r2uw&refer=home