MarketWatch: Citi Cuts 50,000 Jobs

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Citigroup plans to cut about 50,000 jobs

By Greg Morcroft, MarketWatch


NEW YORK (MarketWatch) -- In the most dramatic round of layoffs seen to date in the battered U.S. financial sector, Citigroup Inc. said Monday that it plans to cut about 50,000 additional jobs in an effort to cut costs and stem huge losses sparked by bad investment and lending decisions.

Management also plans to reduce costs across the company by 20% in the near term and will continue to sell off troubled assets.

In the early going on Wall Street, shares of Citigroup were off 24 cents at $9.28.

Combined with earlier cuts of more than 20,000 positions, the latest job cuts will equal a 20 percent reduction in the bank's workforce from peak levels reached in the fourth quarter of 2007.

Citigroup's layoffs are the latest in a brutal round of job cuts across the financial industry. The cuts have been sparked by unprecedented losses due to bad credit investments, as well as the subsequent precipitous drop in banking and other financial-services business amid the worst economic conditions in 70 years.

And, over the weekend, London's Daily Telegraph reported that J.P. Morgan Chase & Co. is planning thousands of job cuts worldwide, citing people close to the matter. ........(more)

The complete piece is at: http://www.marketwatch.com/news/story/Citigroup-plans-50000-job-cuts/story.aspx?guid=%7B496F4689%2D44F8%2D4DDF%2D91EB%2D7B01093B37E6%7D

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