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| Citigroup job cull to hit 75,000 | |
| (about 3 hours later) | |
| US bank Citigroup has announced plans for about 52,000 new job cuts, on top of 23,000 cuts already made this year. | |
| Citigroup said the 75,000 job cuts represented a reduction of about 20% of its staff, leaving it with 300,000 jobs worldwide "in the near term". | |
| The cuts will come from redundancies, the sale of units and natural wastage, the bank said. | The cuts will come from redundancies, the sale of units and natural wastage, the bank said. |
| Citigroup has lost more than $20bn (£13.6bn) in the past year because of the global financial crisis. | Citigroup has lost more than $20bn (£13.6bn) in the past year because of the global financial crisis. |
| It has reported four straight quarterly losses and some analysts believe the bank will not make a profit again until 2010. | |
| Turnaround plan | Turnaround plan |
| Certainly [the job cuts] will fall particularly heavily on London and New York Win Bischoff, Citigroup chairman Citigroup boss shows his mettle | |
| "Underlying business remains strong and revenues have been stable," the bank said. | "Underlying business remains strong and revenues have been stable," the bank said. |
| Citigroup also said its capital position was "very strong". | Citigroup also said its capital position was "very strong". |
| The bank expects its expenses to be down 20% from peak levels, to about $50bn in 2009, after the job cuts have taken effect. | The bank expects its expenses to be down 20% from peak levels, to about $50bn in 2009, after the job cuts have taken effect. |
| "Certainly [the job cuts] will fall particularly heavily on London and New York," Citigroup chairman Win Bischoff said at a business forum in Dubai. | |
| Citigroup's chief executive Vikram Pandit has come under pressure from critics who have doubted his ability to turn around the company and weather the financial crisis. | Citigroup's chief executive Vikram Pandit has come under pressure from critics who have doubted his ability to turn around the company and weather the financial crisis. |
| Shares in Citigroup dropped 4.4% to $9.10 in early trading. They are down almost 70% this year. | |
| Economy in trouble | |
| Citigroup, one of the largest US banks, is one of nine financial institutions benefiting from the US government's bail-out programme. | |
| The Treasury announced last month that it would be providing cash injections worth $125bn to be shared between Citigroup, JP Morgan Chase, Bank of America, Goldman Sachs, Morgan Stanley, Wells Fargo, Bank of New York Mellon, State Street and Merrill Lynch. | |
| "The news of job cuts is one more indication that the economy is in a very difficult shape right now," said Ernie Ankrim, chief investment strategist for Russell Investment Group. | |
| Portfolio manager Walter Todd at Greenwood Capital Associates said: "If the past is any guide, Wall Street overshoots in terms of hiring and then overshoots when it's time to cut jobs. | |
| "But it's not clear if the past is any guide here. It's a moving target, because the markets and the economy are in flux," he added. | |
| Are you affected by the job cuts? | Are you affected by the job cuts? |
| Send your comments using the post form below, or text 61124. | Send your comments using the post form below, or text 61124. |
| In most cases a selection of your comments will be published, displaying your name and location unless you state otherwise in the box below. | In most cases a selection of your comments will be published, displaying your name and location unless you state otherwise in the box below. |