Citi Confirms Wide Ranging Job Cuts

Matt Smith

27 November 2007

A Citigroup spokesperson confirmed the US financial services firm is likely to announce significant cuts in head count across the business, however the firm has not released any numbers yet in anticipation of bringing on a new chief executive officer. The cuts are expected across the business including from within the wealth management division. “Our business heads are planning ways in which we can be more efficient and cost effective to position our businesses in line with economic realities,” the firm stated. “We are engaged in a planning process in anticipation of our new CEO.” Robert Rubin, former US Treasury Secretary and Citi chairman of the board and chairman of the executive committee is standing in as CEO after former Citigroup CEO Charles Prince was ousted earlier this month. Published reports in the US have estimated the number of job cuts at Citi to be anywhere between 17,000 to 45,000 jobs. However the firm stated: “Any reports on specific numbers are not factual.” In its third-quarter earnings, Citigroup reported a 57 per cent or $2.8 billion decline.