The CEO Vikram Pandit said the cuts were in response to declining revenues and market conditions. The measure is expected to reduce costs although there will also be some costs such as severance pay associated with the cuts.
Worldwide Citigroup employs about 267,000 people. The cuts are just a small percentage of their total work force. New regulations requiring larger minimum capital levels and cutting off revenues from trading and investment banking will cut into bank revenues.
Some analysts feel that even more jobs will be cut. Data collected by Bloomberg shows that financial firms have slashed over 200,000 jobs this year. This contrasts with only 58,000 cuts last year.
Citigroup is investing in countries such as Brazil, China and India. In fact emerging markets now make up half Citigroup's profits. These economies are expanding about three times the rate of developing countries. For more see this article.
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