Citigroup To Cut 10,400 Jobs
Financial services giant Citigroup Inc. said Tuesday it would cut 10,400 jobs, or 6 percent of its global work force, and take a restructuring charge of $900 million.
The company, formed by the recent merger of banking group Citicorp and financial services firm Travelers Group, said 35 percent of the job cuts, or 3,650, would come in its U.S. operations.
Citigroup (C) anticipates most of the charge to be recorded in the fourth quarter.
The company also expects to see a pre-tax expense savings of $680 million in 1999 and an annual run rate expense savings of approximately $975 million before taxes in 2000.
Investors applauded the move, driving Citigroup shares up 2 13/16 to to 48 7/8.
"This is an important step in assuring that the company's performance in 1999 and beyond is in line with the promise of the merger," said John S. Reed and Sanford I. Weill, chairmen and co-chief executive officers.