Citigroup's decision to cut about 17,000 jobs and impose other cost-cutting measures drew mixed reviews on Wall Street. It is the financial giant's first companywide restructuring since Citicorp and Travelers Group merged in 1998 to form Citigroup.
Citigroup's largest unit, consumer banking, will face the biggest cuts. The company also will eliminate layers of management. These changes are expected to be completed by the year's end.
Despite the job cuts, the company's payroll will not actually shrink, as it plans to expand operations and add jobs overseas in such locations as China and India.
The plan comes amid growing pressure on CEO Charles Prince to revive the company's fortunes, which were once the envy of its big banking rivals.