The bloodletting continues unabated at Citigroup. The bank has announced layoffs of at least 10,000 employees in its investment bank and other divisions worldwide, according to an article by David Enrich and Robin Sidel in today’s Wall Street Journal. Citigroup’s senior management has ordered budget cuts to employee compensation of at least 25%. Managers can limit the number of layoffs by getting rid of higher paid bankers and traders.
Citigroup has shed approximately 23,000 jobs over the past year and, as of September 30th, had 352,000 employees. The latest round of layoffs is expected to be the deepest one yet. The goal is to shrink Citigroup’s work force to 290,000 employees.
According to the New York Times‘ Eric Dash, author of “Worst May Be Yet To Come for Citigroup,” also in today’s edition, the ax could keep falling. According to Dash’s sources, Citigroup could shed an additional 25% of its work force by the end of next year, reducing the total number of employees to 264,000.