Citigroup says it will cut 53,000 more jobs

November 17, 9:15 AMBusiness ExaminerDarrell Proctor

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Citigroup Inc. CEO Vikram Pandit today is telling workers the company will cut another 53,000 jobs over the next several months.

The company made the announcement early today; Pandit is talking with workers at a town hall-style meeting in New York City.

The downsizing plan is outlined on the company's Web site.

Citigroup has posted four straight quarterly losses, and dropped $2.8 billion in the third quarter. The company's stock has been trading at its lowest point in 13 years.

Citigroup Chairman Win Bischoff spoke today at a business meeting in Dubai, and said it would be "irresponsible" for his company and others to not cut jobs in the current economic climate.

Said Bischoff: "What all of us have done — and perhaps injudiciously — we've added a lot of people over ... this very benign period. If there is a reversion to the mean ... those job losses will obviously fall particularly heavily on the financial sector. Certainly they will fall particularly heavily on London and New York."

Bischoff also said Citigroup executives would forgo bonuses this year, which would in effect be a substantial pay cut. Asked about the bonuses, Bischoff said: "Watch this space."