Citi Cutting 4,500 Jobs

Bank faces 'extremely challenging' conditions, CEO says

By Rob Quinn,  Newser Staff

Posted Dec 7, 2011 12:43 AM CST

(Newser) – Citigroup plans to cut some 4,500 jobs—2% of its global workforce—in the coming months as it "faces an extremely challenging operating environment," CEO Vikram Pandit warns. Pandit, who has cut more than 100,000 jobs at Citi since taking charge in 2007, says regulatory changes and the euro zone crisis are among the factors forcing the company to cut costs as revenue slumps, Reuters reports.

Citi says the job cuts will cost close to $400 million in severance and other expenses. Financial firms worldwide have cut more than 200,000 jobs this year, and analysts believe many more jobs could go soon. "The 4,500 is a drop in the bucket for them, particularly when you consider how big they are and their global scope,” Nancy Bush, an analyst at SNL Financial, tells Bloomberg. "I’d be suspicious that this may be the tip of the iceberg.”

Citigroup is showing the door to around 2% of its global workforce.   (Getty Images)
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