Vikram Pandit, Citigroup’s chief executive, vowed to slash the beleaguered financial group’s cost base by up to 20%, deepening fears that the City of London and Wall Street are about to be hit by tens of thousands of additional job losses. Financial Times, Daily Telegraph
Pandit, who took over Citi in December, indicated cuts in operating expenses would not only come from reductions in the 370,000-strong workforce, but also from improvements in computer systems and a greater focus on core businesses.
However, his cost-reduction targets suggest Citi, which is likely to report a large firstquarter loss today, could cut more jobs than expected. Analysts predict the company will shed about 25,000 jobs in the next few months after two years of rapid expense growth, which left it with $61.5bn (£31bn) in operating expenses in 2007.