Citigroup will cut 17,000 jobs in an attempt to close the gap between its revenue, up 7% last year, and its expenses, up 15%. The two-year cost-cutting plan comes after shareholders demanded major changes, but analysts agree that lowering expenses is only the first step. Upping revenue is the next.
The layoffs, over half of which will be made outside the U.S., represent about 5% of the financial giant's staff. Another 9,500 employees will be asked to relocate to more cost-efficient locations like Buffalo, NY, and Poland. Including previously announced cuts, Citigroup stands to save $10.36 billion through 2009.