Citigroup to cut 400 jobs in UK; India to follow
Reeling under huge subprime-related losses, Citigroup is planning to axe close to 400 employees in its UK investment banking business.india Updated: Jan 24, 2008 18:50 IST
Reeling under huge subprime-related losses, Citigroup is planning to axe close to 400 employees in its UK investment banking business, which it might soon follow with job cuts at other places including India, a report said.
"Citigroup is to cut about 400 of its investment banking staff in the UK as part of the US bank's plan to reduce the headcount by 4,200 globally," Financial Times reported.
"The remaining 3,800 of Citi's proposed cuts are likely to fall in its US consumer finance business, as well as in Asia and India," the report added.
The world's largest bank, which late last year appointed India-born banker Vikram Pandit as its CEO, has already disclosed billions of dollars worth of losses related to the subprime crisis in the US, whose after-effects are being witnessed across the global financial markets including India.
The bank has a headcount of close to 11,000 people in the UK. The daily said that Citigroup reviews its staff every year in January with an aim to "weeding out the weakest 5 per cent and filling their positions with stronger external recruits."
"But the process this year would see only a minority of departures being replaced," the report quoted people familiar with the plans as saying.
The bank started the consultation process on the proposed job cuts earlier this week, while disclosing the bonuses for its employees for the year 2007.
"It used the bonus round to retain promising junior staff and even paid higher bonuses to members of its fixed-income division if they performed well," it quoted insiders as saying.