Citigroup (C) is considering more cuts in its securities unit after it failed to boost revenue last quarter. The bank has already 1,200 job eliminations in its Securities and Banking division, saving it $600 million in 2012. Further restructuring may be in the works.
In a Jan. 23 conference call, chief financial officer John Gerspach said, "we are not oblivious to the fact that our cost structure cannot be justified by our current revenue... we must either drive revenue growth and operating leverage, or we will have to restructure, cut capacity and cut expenses."
Job cuts going back to late last year now total 5,000 for the company, representing 1.9% of its total workforce as of the end of 2011. The main concern for the bank continues to be the overhang from events in Europe.
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