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U.S. Banking giant Citigroup, the largest company in the world according to Forbes business magazine, said it would eliminate about 17,000 jobs throughout your organization, as part of a plan to streamline the organization, growth, cutting costs and drive future expansion. Most job cuts will take place this year.
8 per cent of 327,000 people – work force will be affected by the restructuring in 9,500 jobs will move to lower-cost locations, too. The company-wide cuts primarily affect middle and back office operations, rather than customer facing staff. Layers of management and some corporate offices will be deleted.
According to recent press reports, Citigroup has been the relocation of staff from expensive New York offices elsewhere where costs are lower, as part of its review of costs.
According to Citigroup (NYSE: C), a New York-based financial services company, the plan is part of a structural review of the expenditure incurred during the last three months in each business line.
The plan is expected to generate total cost savings of $ 2.1 billion in 2007, $ 3.7 billion in 2008 and $ 4.6 billion in 2009. Citigroup savings previously announced information technology, too.
The financial strength and its chief executive Charles Prince, has been under heavy pressure from major shareholders and investors in recent months to cut Citigroup costs.
Operating expenses rose 15 percent in 2006 to $ 52 million, while revenue rose 7 percent.
The greatest Citigroup individual shareholder, Saudi Prince Alwaleed bin Talal, called the bank to make "draconian" cuts.
Since Citicorp and Travelers Group in 1998 were merged to form Citigroup, this is the first restructuring.
The bank also faces strong competition from rival Bank of America, which has expanded aggressively in recent years.
The planned cuts follow a review begun in December by the chief operating officer, Robert Druskin. "Many of the initiatives undertaken in the name of cost reduction have also been designed to unclog our corporate system. We want to make Citigroup more nimble, entrepreneurial place.
We want decision-making faster. We want things to move through the pipeline faster, " said.
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Article Source: ArticlesBase.com – Citigroup to Cut Jobs
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