Citigroup reportedly eyes 15,000 job cutsCitigroup execs reported looking at reorganization plans that could trim 5 percent of worldwide staff, result in $1 billion charge.NEW YORK (CNNMoney.com) -- Citigroup is weighing a restructuring plan that is likely to involve around 15,000 job cuts and a charge against earnings of more than $1 billion, according to a published report Monday. The Wall Street Journal reported the plans, which could be revealed by the time Citigroup reports first quarter results next month. CEO Charles Prince announced a cost-cutting review of operations late last year and has billed the outcome as critical to rejuvenating the world's largest financial-services company, the paper reported.
A cut of 15,000 jobs would represent about a 5 percent reduction in Citigroup's worldwide work force of 327,000, according to the paper's report. Some of the reduction could be achieved by not filling positions opened through normal attrition. About 30,000 to 50,000 Citigroup employees leave the company each year, the paper reported. Concerns about costs rising faster than revenue has increased pressure on Prince from some major shareholders. Shares of Citigroup have trailed the returns for rivals JP Morgan Chase (Charts) and Bank of America (Charts) when dividends are considered. The Journal said Citigroup executives are concerned about not cutting too deep and hurting its growth plans. The company has a goal of expanding international revenue to 60 percent of total revenue from a current base of about 44 percent, the paper reports. It has not dropped acquisition efforts even as it weighs cut in its staff. Some executives are pushing Prince for Citigroup to make a bid for Dutch banking giant ABN Amro Holding (Charts), which is reportedly in talks to be acquired by British bank Barclays (Charts). But the Journal's report Monday said a Citigroup bid for ABN may take a back seat to work on its cost-cutting plans. |
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