Citigroup Cutting 53,000 Jobs Worldwide

By: CBS News
By: CBS News
The troubled bank will chop 20% of its workers in the upcoming quarters.

** FILE ** The Citibank logo is shown on a branch office in this April 11, 2007 file photo in New York. Citigroup Inc. has gotten $12.5 billion in much-needed cash from a batch of investors as it posted its first quarterly loss in 16 years in the fourth quarter, when the bank's mortgage portfolio lost $18.1 billion in value. (AP Photo/Mark Lennihan, file)

NEW YORK - Citigroup Inc. is cutting approximately 53,000 more jobs in the coming quarters as the banking giant struggles to steady itself after suffering massive losses from deteriorating debt.

The presentation of the company's plans, posted on the company's Web site, are being discussed by CEO Vikram Pandit at the company's town hall meeting in New York Monday with employees.

The company said total headcount is being reduced by 20 percent from its peak of 375,000 at the end of 2007; the company had already announced in October that it was eliminating about 22,000 jobs from those levels.

The New York-based bank has posted four straight quarterly losses, including a loss of $2.8 billion during the third quarter.

The presentation also says that the company is going into 2009 in a stronger position than in 2008, having significantly reduced risky assets, and securing a "very strong" capital position.

Citigroup added approximately $75 billion in assets since the third quarter of 2007, a third of which ($25 billion) came from selling preferred equity to the government via the Treasury Department's Congressionally-approved bailout program.

However, last week, Treasury Secretary Henry Paulson announced that, contrary to the original plans for the government's bailout, he would not purchase troubled assets from banks, for which Citibank (hard-hit by the mortgage crisis) had already been approved.

The presentation stated the global group had $2.050 trillion in total assets, and $750 billion in deposits.

The 53,000 job cuts are in addition to the 22,000 already being eliminated from Citigroup Inc.'s 375,000-member work force as of the end of 2007. The latest cuts bring the total job reductions to 20 percent.

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