Citigroup has announced it is to implement worldwide job cuts, according to the Financial Times.
Citigroup said it will cut 3,500 jobs over the next 12 months to offset the toll that slowing capital-markets activity has had on its profits, the FTreported, citing a quarterly filing with the US Securities and Exchange Commission.
Of the 3,500 redundancies, nearly 2,200 of those will be made in the US. Citigroup employs about 1,200 people in Dublin’s International Financial Services Centre.
In the filing, Citigroup said it recorded a restructuring charge of $209 million against second-quarter earnings "primarily related to the downsizing of various functions in the Global Corporate and Global Consumer businesses".
About $177 million of that charge will cover the cost of employee severance packages over the next year, the company said.
The latest cuts come as Citigroup faces its slowest profit growth since the mid-1990s, the FTsaid.
While profits from operations rose 13 per cent to 3.79 billion, or 74 cents a share in the second quarter, the company expects slower growth in the coming quarters, it said.
AFP