CITIGROUP SAYS 10,400 WORKERS WILL LOSE JOBS.Byline: Patricia Lamiell Associated Press Associated Press: see news agency. Associated Press (AP) Cooperative news agency, the oldest and largest in the U.S. and long the largest in the world. Ending months of speculation, Citigroup Inc. released details Tuesday of the human and monetary costs of consolidating its diverse empire of financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. . Citigroup announced that 10,400 people, or 6.5 percent of its work force, would lose their jobs as overlapping operations are cut. Analysts had been expecting around 8,000 job cuts. About 35 percent of the job cuts, or 3,600 jobs, will be made in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . Citigroup also said the restructuring would take a huge $900 million bite out Verb 1. bite out - utter; "She bit out a curse" let loose, let out, utter, emit - express audibly; utter sounds (not necessarily words); "She let out a big heavy sigh"; "He uttered strange sounds that nobody could understand" of its profits, most of which would be taken in the fourth quarter. The announcements Tuesday marked the first time the company assigned specific numbers to its restructuring program. Ever since the merger of Citicorp and Travelers Group was completed in October, speculation has been mounting over how much the company's consolidation efforts would cost. The merger brought together a major bank, Citibank, and the huge insurance and securities operations of Travelers Group, which includes the Salomon Smith Barney Smith Barney is a division of Citigroup Global Capital Markets Inc., a global, full-service financial firm, that provides brokerage, investment banking and asset management services to corporations, governments and individuals around the world. brokerage house. Both companies had significant corporate accounts, leading to overlap in some areas. When the merger was first announced in April, Citigroup said it expected to add about $1 billion to its bottom line over the next several years, mainly from higher revenues. But the restructuring program detailed Tuesday signals that the company will also have to rely heavily on cost savings in addition to revenue growth in order to boost profits. Wall Street's reaction was positive. Citigroup's shares rose $2.6875, or 6 percent, to $48.75 on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. . The cost-cutting efforts are expected to save the company about $680 million in 1999 and $975 million in 2000. Citigroup expects just over half of its savings in 2000 to come in the more profitable consumer side of the business, which prompted concern from some analysts. ``The challenge is that they don't throw the baby out with the bath water,'' said Burt Ely, president of the consulting firm Noun 1. consulting firm - a firm of experts providing professional advice to an organization for a fee consulting company business firm, firm, house - the members of a business organization that owns or operates one or more establishments; "he worked for a Ely & Co. in Arlington, Va. |
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