Citigroup May Cut Jobs, Take $1 Billion Charge - WSJ
Citigroup executives are putting the finishing touches to a restructuring plan that is likely to include about 15,000 job cuts and a charge against earnings of more than $1 billion, according to people familiar with the matter, The Wall Street Journal reported.
The review is being spearheaded by Chief Operating Officer Robert Druskin, who is due to report his recommendations internally by the end of the week, the Journal reported on Monday.
The financial company expects to unveil the plan by the time it reports its first-quarter results on April 16, the day before Citigroup's annual meeting, the Journal said.
While the plan isn't final, Druskin is contemplating about a 5% reduction in Citigroup's worldwide workforce of 327,000, according to people familiar with the matter, the Journal said.
A representative from Citigroup said a review of the company's operations is under way, as announced last year. The review is scheduled to be done by April 16, but the representative would not comment on figures involved.
Charles Prince, Citigroup's chief executive officer, last year said he would review operations last year with an eye toward cutting costs. Analysts believe the outome is critical to the future of the world's largest financial services company which has seen expenses rise at a faster rate than revenue.
Chief Operating Officer Robert Druskin is leading the review and is scheduled to make his recommendations by the end of the week. His suggestions will be made internally and the company expects to make the plan public by the time it reports first-quarter earnings April 16.
Citigroup may not replace some of the 30,000 to 50,000 employees who leave the company each year.