Citigroup,
the world’s biggest financial bank, is reportedly planning to axe up to 10% of
its workforce in an effort to stem mounting losses.
The bank is expected to make an announcement about the job cuts, which could
result in as many as 32,000 people being made redundant, when it unveils its
full year figures on January 15, The Times reports.
This decision would represent one of the first emergency measures introduced
by Vikram Panditt, the banks’ newly appointed appointed chief executive.
Citigroup is rumoured to write down as much as $US18.7bn (?9.5bn) in the
fourth quarter of the year to cover bad investments the bank made in bonds
backed by sub-prime mortgages. The bank is also expected to cut its dividend by
40% to preserve cash as the credit market deteriorates.
Further reading:
Citi brings $49bn SIVs on balance sheet
Citigroup faces legal action over pension losses
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