Citigroup has reduced its headcount by 2,000 in the third quarter (Q3), which brings the company’s total severance charges for the year to $650 million, reported Bloomberg.
Company’s Chief Financial Officer Mark Mason said on a conference call with analysts discussing earnings that the company has cut around 7,000 jobs in total this year. He further said the previous $450 million recorded at the end of June was for approximately 5,000 job cuts.
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Mason also mentioned that the reason behind the reduced headcount of the company is the repositioning charges; he emphasised that the charges the firm recorded so far this year don’t encapsulate the reorganisation that Citigroup announced last month (a revamp that will refocus the firm on five key businesses).
The group has said that the restructuring will lead to more job cuts, but the firm is yet to give out a number, says the report.
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Despite the reductions, the firm’s total headcount of 240,000 employees has actually stayed constant over the past four quarters. In order to assist in its attempts to comply with a pair of consent orders the firm got from regulators, the bank has added technology staffers and other employees.
In the third quarter, Citigroup’s spending increased by 6 per cent to $13.5 billion, which was less than experts had predicted. According to a presentation of earnings, the bank is still expecting $54 billion in total expenses for the entire year, as per the report.
Previously, in June, reports claimed that to deal with the market’s adverse conditions, the firm is also planning to cut down 30 investment banking jobs and 20 corporate ones at its London unit.
To adapt to the state of the market, the corporation wants to lower its cost base. Additionally, the organisation is dissolving its international team that offers commentary and analysis on foreign exchange markets, reported Bloomberg.
A previous report also stated that the company’s recent round of closing arms and reducing workforce efforts has resulted in its departures from both London and New York, as well as its Latin America corporate bond trading team.
