Speaking at the Goldman Sachs Financial Services Conference on Tuesday, CEO Vikram Pandit said the bank will take a $400 million charge related to the job reduction, including severance charges.
Citi is targeting an annual reduction of 3% to 5% of its expenses. A sizeable chunk of the latest job cuts are likely to be in the investment banking division, given the pressure on markets revenues as a result of ongoing uncertainty in Europe.Citi has begun trimming its workforce in its investment banking office in London, Reuters reported on Wednesday. Those in the mergers and acquisitions division were notified on Monday, while equities and foreign exchange are expected to be notified on Wednesday and Thursday, the report said, citing people familiar with the matter. Citigroup shed thousands of jobs in 2008 and 2009 following the financial crisis. Since then its workforce has leveled off and stood at about 267,000 as of the third quarter of 2011.