Citigroup today said it plans to axe about 53,000 more jobs in the coming quarters as the financial services giant struggles to recover from huge subprime related losses. The company said total headcount is being reduced by 20% from its peak of 375,000 at the end of 2007; The company had already announced in October that it was eliminating about 22,000 jobs from those levels.
The plans, posted today on Citi's web site, were due to be announced by CEO Vikram Pandit at at staff meeting in New York Monday with employees.
Citigroup is also planning to cut expenses by 20%, targeting 2009 expenses of $50 billion to $52 billion.
The New York headquartered bank posted four straight quarterly losses, including a loss of $2.8 billion during the third quarter.
In Dubai, Citigroup Chairman Win Bischoff said at a business forum, that it would be irresponsible for Citi and other companies not to look at staffing in the event of a prolonged economic downturn.
"What all of us have done -- and perhaps injudiciously -- we've added a lot of people over … this very benign period," Bischoff said.
"If there is a reversion to the mean … those job losses will obviously fall particularly heavily on the financial sector,"he added. "Certainly they will fall particularly heavily on London and New York."
Bischoff told reporters that Citi's executives may forego bonuses this year.
"Watch this space," he said.
On Sunday, Goldman Sachs said seven top executives, including Chief Executive Lloyd Blankfein, had agreed not to accept ash or stock bonuses for 2008.
Citi has over 2,000 employed at Dublin's International Financial Services Center (IFSC).