Citigroup slashing 17,000 jobs worldwide

NEW YORK: Global banking giant Citigroup will cut some 17,000 jobs as part of a major overhaul of its operations, the company announced on Wednesday.

The company, under pressure from leading shareholders to reduce costs, said the move was the result of a comprehensive review of expenses over three months.

"As a result of the structural changes identified in the review, Citi will eliminate approximately 17,000 positions," the company said in a statement.

It also said that more than 9,500 jobs will be transferred to 'lower-cost locations' in the United States and abroad.

"Ultimately these changes will streamline Citi and make us leaner, more efficient, and better able to take advantage of high revenue opportunities," said Charles Prince, chairman and chief executive officer.

The cost cuts are expected to generate total expense savings of approximately $2.1 billion in 2007, $3.7 billion in 2008, and $4.6 billion in 2009, Citigroup said.

Citigroup employs some 327,000 people and the job cuts represent about five per cent of its staff.