Gulf News

Citigroup plans to slash 17,ooo jobs

Biggest US bank seeks to cut annual expenses by $4.6b in the next three years

-

Citigroup Inc, the biggest US bank, plans to cut about 17,000 jobs, or five per cent of its workforce, as the company seeks to lower annual expenses by $4.6 billion in the next three years.

Citigroup will shut offices, including about 45 Smith Barney branches, and shift some of its 337,000 full- and part-time workers to lower-cost locations, Chief Operating Officer Robert Druskin said yesterday in an interview.

The reductions are part of the New York-based company's plan to bring costs in line with competing banks.

Chief Executive Officer Charles Prince has been criticised by shareholde­rs because Citigroup’s stock trails rivals, including Bank of America Corp and JPMorgan Chase & Co, and expenses increased twice as fast as revenue last year as the company opened 1,150 branches.

The job

reductions equal about half the positions that Citigroup added last year, according to the company’s annual report.

“I think the numbers overall are modestly better than what our expectatio­ns were,'' said David George, an analyst at A.G. Edward & Sons who rates Citigroup a “buy.”

Newspapers in English

Newspapers from United Arab Emirates