Published on Dec 7, 2011 by Euronews
http://www.euronews.net/ Citigroup has started a round of layoffs among its London-based investment bankers as it cuts 4,500 workers worldwide.
Two percent of its workforce is being laid off, including hundreds in Europe, the Middle East and Africa.
Several Citi insiders said they expect further cuts, possibly next year.
Severance pay and other expenses related to the layoffs will cost the bank 300 million euros.
Citi Chief Executive Vikram Pandit said the latest cuts would be completed over "the next few quarters".
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Two percent of its workforce is being laid off, including hundreds in Europe, the Middle East and Africa.
Several Citi insiders said they expect further cuts, possibly next year.
Severance pay and other expenses related to the layoffs will cost the bank 300 million euros.
Citi Chief Executive Vikram Pandit said the latest cuts would be completed over "the next few quarters".
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Uploaded by FinancialNewsOnline on Dec 7, 2011
Citigroup (NYSE:C) CEO Vikram Pandit announced that the bank plans to cut 4,500 jobs, or about 1.5% of its global workforce of 267,000, over the next few quarters, the Associated Press reports.
As a result of the cuts, the bank will take a $400 million charge in Q4. Pandit has also warned that Citigroup will take a $500 million hit to revenue from an accounting-related charge related to the changing value of its debt.
Pandit said, "Financial services faces an extremely challenging operating environment with an unprecedented combination of market uncertainty, sustained economic weakness in the developed economies and the most substantial regulatory changes we have seen in our lifetimes. These trends will likely significantly affect the competitive landscape in the coming years."
Citigroup (NYSE:C) has potential upside of 46.4% based on a current price of $29.75 and an average consensus analyst price target of $43.55.
As a result of the cuts, the bank will take a $400 million charge in Q4. Pandit has also warned that Citigroup will take a $500 million hit to revenue from an accounting-related charge related to the changing value of its debt.
Pandit said, "Financial services faces an extremely challenging operating environment with an unprecedented combination of market uncertainty, sustained economic weakness in the developed economies and the most substantial regulatory changes we have seen in our lifetimes. These trends will likely significantly affect the competitive landscape in the coming years."
Citigroup (NYSE:C) has potential upside of 46.4% based on a current price of $29.75 and an average consensus analyst price target of $43.55.
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