Jobs bloodbath as Citi takes the axe to 52,000 staff

Jobs bloodbath as Citi takes the axe to 52,000 staff

Stumbling banking giant Citigroup has stunned Wall Street by announcing plans for a further 52,000 job cuts.

The latest round of lay-offs comes on top of 23,000 job cuts announced earlier this year. In total, Citi says the 75,000 job losses represent about 20% of its global workforce, leaving it with 300,000 staff worldwide.

The banking giant says the cuts will come from redundancies, the sale of units and natural wastage.

The massive job reduction programme represents the latest effort by Citi CEO Vikram Pandit to turn around the banking colossus after reporting four straight quarterly losses. He says the right-sizing will cut 20% from the bank's bottom line, bringing expenses down to $50 billion in 2009.

The axe is expected to be swung across multiple business lines, including retail and investment banking, with technology staff worldwide also in the firing line.

The culling of financial market jobs shows no sign of letting up. Citi's announcement comes after Goldman Sachs and Royal Bank of Scotland also signalled plans for drastic cuts in headcount as the financial markets turmoil continues.

More bad news is expected later this month as JPMorgan completes a global review of its investment banking operations. Analysts believe the bank could be prepared to axe 3000 staff, or 10% of its global workforce.

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