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Banamex bank merger leads to 7,800 job cuts

Thursday, Nov. 15, 2001 | 10:19 a.m.

NEW YORK -- Six months after announcing it would buy the Mexican bank chain Banamex for $12.5 billion, Citigroup Inc. plans to cut 7,800 jobs to reduce costs.

Citigroup disclosed Wednesday that 4,200 jobs would be slashed from Citigroup's employee roster and 3,600 would be eliminated from the Banamex work force.

The cuts, mostly in Mexico, will cost Citigroup $145 million in severance payments, Citigroup said.

Only about 50 of the jobs to be cut are based in the United States. Last month, Banamex said it would close 101 Banamex branches and lay off 2,700 workers.

After the merger was announced in May, Citigroup officials estimated they could save $200 million by eliminating overlapping costs -- but they dodged questions on how those savings would be achieved.

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