Citigroup to lay off 3,500 more workers

Tuesday, Aug. 14, 2001 | 10:54 a.m.

SUN STAFF AND WIRE REPORTS

Citigroup Inc. will let go 3,500 more workers this year because of the economic downturn, adding to the 1,200 layoffs it previously announced.

Leah Johnson, a spokeswoman for the New York-based financial services giant, said the cutbacks were necessary because of "current market conditions."

Citigroup had said in its second-quarter earnings statement that it would take a $133 million after-tax charge for severance costs, but did not provide the number of employees to be let go. The size of the planned job cuts was revealed in a Citigroup filing Monday with the Securities and Exchange Commission.

Last year, Citigroup laid off 7,400 workers, cutting its worldwide staff to about 250,000.

A number of banks and other financial institutions have cut their work forces this year as the slowing economy has reduced the demand for investment services, merger and acquisition support, and corporate borrowing.

Citigroup, the world's largest bank holding company in terms of assets, said that two-thirds of the job losses this year would be in the United States, with the balance overseas.

Johnson said that the cuts would be "across each major business segment," including emerging markets, consumer, global corporate and investment banking, and insurance.

In morning trading, shares of Citigroup were up 20 cents at $49.33 on the New York Stock Exchange.

Citigroup's Citibank unit operates a big call center and five bank branches in the Las Vegas area employing about 2,300 people.

Johnson said she couldn't specify if any layoffs are planned for the Las Vegas operations.

"Of the 3,500 layoffs planned for this year, 2,150 positions are to be laid off in the United States. We can't speculate beyond what's in the SEC filings," she said.