Presenting at Goldman Sachs U.S. Financial Services Conference, Citigroup Chief Executive Officer Vikram Pandit announced plans to cut about 4,500 jobs in coming quarters. The bank will take a Q4 pre-tax charge of about $400 million tied to the reductions, including severance.
"Financial services face an extremely challenging operating environment with an unprecedented combination of market uncertainty, sustained economic weakness in the developed economies and the most substantial regulatory changes we have seen in our lifetimes,” said Pandit. "These trends will likely significantly affect the competitive landscape in the coming years."
From Citigroup's presentation (slide one): i) Market conditions remain challenging; ii) Industry is facing significant changes in the economic, regulatory and competitive landscape; iii) Even in this environment, Citi is executing its strategy in a consistent, results-driven manner; and iv) Core Citicorp strategy and model are well-aligned with global trends.
What does this slide mean? According to financial blog The Business Insider: "Things are bad; things are especially bad for banks; Citi has a strategy and is executing it; Citi is tied to the global economy."
Citigroup (C : NYSE : US$29.83), Net Change: 0.08, % Change: 0.27%, Volume: 53,189,923
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