US banking giant Citigroup, the largest company in the world according to Forbes business magazine, said it would eliminate about 17,000 positions throughout its organization, as part of a plan to streamline the organization, cut expense growth and drive future expansion. Most of the job cuts would take place this year.
8 per cent of the bank's 327,000-person workforce will be affected by the restructuring as additional 9,500 jobs will move to lower-cost locations, too. The company wide cuts primarily affect middle- and back-office operations, rather than client-facing staff. Layers of management and some corporate offices will be eliminated.
According to recent press reports, Citigroup has been relocating staff from expensive New York offices elsewhere where costs are lower as part of its cost review.
According to Citigroup (NYSE: C), a New York-based financial services company, the plan is part of a structural expense review conducted over the past three months in every line of business.
The plan is expected to generate total expense savings of $2.1 billion in 2007, $3.7 billion in 2008 and $4.6 billion in 2009. Citigroup previously announced information technology savings, too.
The financial powerhouse and its chief executive Charles Prince have come under heavy pressure from leading shareholders and investors in recent months to slash Citigroup's expenses.
Operating expenses soared 15 per cent in 2006 to $52 billion, while revenue rose 7 per cent.
Citigroup's largest individual shareholder, Saudi Prince Alwaleed bin Talal, called on the bank to make "draconian" cuts.
Since Citicorp and Travelers Group merged in 1998 to form Citigroup, this is the first companywide restructuring.
The bank is also facing strong competition from rival Bank of America which has expanded aggressively in recent years.
The planned cuts follow an expense review begun in December by Chief Operating Officer Robert Druskin. “A lot of the initiatives undertaken in the name of expense reduction also are designed to unclog our corporate system. We want to make Citigroup a more nimble, entrepreneurial place.
We want decision-making to be quicker. We want things to move through the pipelines faster,” he said.
For Accountancy Jobs or Jobs in general go to http://www.jobserve.com/.
- Related Videos
- Related Articles
- Ask / Related Q&A
Is your affiliate program turning away clients and affiliates?
By: Sandra P. Martini | 11/11/2009Affiliate programs are meant to be a win for everyone involved. So with so many "wins", why are affiliate programs ticking people off and costing you both money AND your reputation?
A Ticket Broker Can Help You Find Tickets for Any Football Match
By: R Vignesh Kumar | 11/11/2009How many times did you not want to see more than one football match in a month, but because their tickets were put on sale in the same day you could buy tickets only for one? Now, you can buy tickets for all the matches you want to see from one place: from the ticket brokers.
Avoid Fake or Opportunistic Disney Ticket Brokers
By: R Vignesh Kumar | 11/11/2009A trip to Disney it is every child’s dream. Because tickets can be quite expensive, it is always good to find ticket brokers who give you discounts to Disney tickets. However, not all the ticket brokers selling discounted tickets are trustworthy. Many people have been duped because of their overconfidence and lack of information. If you do not want to be one of them you should be very careful where you buy your tickets from.
Have You Lost Your Hope In Finding a Ticket For Your Favorite Event? Look for a Ticket Broker!
By: R Vignesh Kumar | 11/11/2009Have you just found out that your favorite band is coming to town and that there are no more tickets available for the concert? Have you promised to someone dear that you are going to buy tickets for tomorrow’s theater play and have completely forgot about it? There is no reason to panic. Even though the tickets put on sale at the venues have been sold out there are still great chances that you find tickets for an event.
Why Structural Steel Detailing is Vital for Construction Success?
By: James Lee | 11/11/2009Structural steel detailing is vital process for a gamut of industries such as residential building construction, industrial plants, ship making, and large malls among others. Precision steel detailing is critical for the success of large structures such as skyscrapers.
Reasons for Choosing a Ticket Broker When You Want to See a Show in Chicago
By: R Vignesh Kumar | 11/11/2009Ticket brokers are a very convenient way of buying tickets for the events you do not want to miss. Because Chicago is well-known for the numerous theaters and shows which are staged here, you may want to take a look on a ticket broker’s site and purchase tickets to the most important events. But why choose a ticket broker and not just go to the venues and buy your tickets from there? Read on to discover the advantages of a Chicago ticket broker.
Why Most Ticket Brokers Have Profit and You Don’t
By: R Vignesh Kumar | 11/11/2009The news according to which ticket brokers earn a lot of money simply by buying cheap tickets and then selling them for a bigger price spread fast around everywhere. This determined many people to try their luck in this business. However not all of them have found the success they were expecting. What went wrong? Here are some mistakes that you should avoid making if you want to make good money by selling tickets.
Friends Graphic A solution of Designing & Printings in New Delhi
By: Daleep | 11/11/2009We the Friends Graphic are dedicated to offer our clients a innovative plan in the area of total Designing and Printing Solutions at our place. We will provide you with top superiority services in Designing & Printing on different kinds of websites like Placards, Banners, Publication, Envelope, Stickers, Business Cards, Label Printings, etc. We suppose to you providing with enormous and cost effective products. Friends Graphic affords you a number of ways toget replies with fast and efficient
Virgin Money Credit Card Best for Balance Transfer
By: Alison White | 08/02/2008 | BusinessThe Post Office interviewed more than 2,000 people on attitudes to credit card spending and found that one in four expected they would buy more on credit this month than they did in January last year.
Car Insurance Market Dips
By: Alison White | 08/02/2008 | BusinessCar insurance rates for policies bought on the web have dipped for the first time in the last two years. Online comprehensive motor insurance premiums dipped slightly during quarter four in 2007 according the latest Motor Insurance Benchmark from Experian.
Eu Reports Lower Prices in Telecom: is it Only Due to Regulations?
By: Alison White | 09/05/2007 | NetworkingEuropean consumers continue to benefit from lower prices and innovative services as a result of good progress in the implementation of Europe’s telecom rules. However, for consumers and providers to reap the full benefits of Europe's internal market, more competition and a more consistent and speedy application of remedies and regulators that are more independent are necessary.
Another VoIP Milestone: Over 1,000 Billion VoIP Minutes Used in 2006
By: Alison White | 09/05/2007 | NetworkingThe 8th annual report on VoIP industry published by iLocus identifies size and market leaders in over 50 market segments/sub-segments within the VoIP services and equipment markets.
Mixed Reactions to New Ofcom VoIP Regulations
By: Alison White | 09/05/2007 | NetworkingOfcom will start regulating the burgeoning internet telecoms sector this summer to ensure that customers are fully aware of the potential limitations of some computer-based phone services.
VoIP Market in Europe is Least 2 Years Behind US
By: Alison White | 09/05/2007 | NetworkingRecent research carried on European SMEs - in the UK, France, Germany and the Netherlands is revealing their perceptions and experiences with business VoIP. Parallels were found between current European markets and the status of the US market in 2005. Identical research was also carried out in the US.
C21 Communications: Mobile VoIP and Fixed Mobile Convergence Delivers Significant Savings to Organisations
By: Alison White | 09/05/2007 | NetworkingC21 Communications,is a Fixed Mobile Convergence solutions provider and exclusive distributor of products in the UK.
Citigroup to Cut Jobs
By: Alison White | 24/04/2007 | BusinessUS banking giant Citigroup, the largest company in the world according to Forbes business magazine, said it would eliminate about 17,000 positions throughout its organization, as part of a plan to streamline the organization, cut expense growth and drive future expansion. Most of the job cuts would take place this year.