NEW YORK ( TheStreet) -- Citigroup CEO Vikram Pandit announced plans to axe 4,500 jobs in coming quarters.

Citigroup will take a $400 million charge in the fourth quarter tied to the job reduction, including severance and other expenses, according to a prepared statement. Pandit was speaking at the Goldman Sachs Financial Services Conference in New York.

Earlier reports suggested that Citigroup would layoff atleast 3,000 workers as part of its broader expense-reduction efforts. The bank is targeting an annual reduction of 3% to 5% of its expenses.

Citi will also be making a non-cash valuation adjustment of $300 million in the fourth quarter against deferred tax assets in Japan due to a recently passed legislation that lowered corporate tax rates.

Pandit said that tightening credit spreads could also impact its fourth quarter results negatively. In total, in the third quarter, the bank earned CVA and hedging gains in its lending business of nearly $2.6 billion due to widening credit spreads. To date in the fourth quarter, based on yesterday's spreads, these same items would result in a negative $500 million impact on revenues, the CEO said.

--Written by Shanthi Bharatwaj in New York

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