Citigroup Inc. Chief Executive Officer Vikram Pandit has announced plans to fire 4,500 employees in the coming quarters.
To accomplish his goal Pandit will take a charge of nearly $400 million which will be used to pay severance packages and provide for other reductions.
Speaking at a New York City based investor conference Pandit said the company currently employs nearly 267,000 people while announcing that cuts have become necessary as the European sovereign-debt crisis continues to persist and banks prepare for regulations that will affect minimum capital levels.
To control costs the company will only hire for “critical” positions in the short-term.
Since becoming CEO of Citigroup in December 2007 Pandit has eliminated more than 100,000 jobs through direct firings and through the sale of distressed assets from Citi Holdings unit such as the company’s sale of their student loan assets to Discover Financial.
Speaking about the company’s current position Pandit said that:
“Financial services faces an extremely challenging operating environment with an unprecedented combination of market uncertainty, sustained economic weakness in the developed economies and the most substantial regulatory changes we have seen in our lifetimes,” and “These trends will likely significantly affect the competitive landscape in the coming years.”
Upon news of the firings Citigroup stock fell by .3 percent to $29.75%, a 37 percent fall in 2011 to date.
Are you surprised to learn that Citigroup is continuing to gut their employee base? Given the last four years of trending it wouldn’t come as a surprise to learn of more employee firings as we head into 2012.