Citigroup Likely To Avoid ‘Massive’ Job Cuts, Gerspach Says

Citigroup to Avoid ‘Massive’ Job Cuts, Gerspach Says Citigroup Inc. (C), the third-largest U.S. bank by assets, expects to avoid “massive” reductions in staffing as it lays off workers amid a market slowdown, Chief Financial Officer John Gerspach said.

The company is more likely to cut jobs than add them while adjusting its workforce, Gerspach said today on a conference call with journalists. The New York-based bank employed about 261,000 people at the end of June, down from 263,000 three months earlier, according to data.

Citigroup is laying off about 5,000 workers as it adjusts to new trading regulations and clients take fewer risks amid the European sovereign-debt crisis, the company said in January. The bank, which seeks to cut 1,200 jobs from its securities and banking division, will consider more spending reductions in trading and investment banking if revenue doesn’t improve.

“There certainly is a good element of headcount reduction that is contributing to the overall expense reduction,” Gerspach said. “We’re going to continue to look at that business and make sure that we’ve got it sized appropriately.”

Read the full story at Bloomberg.

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Image Credit Victor J. Blue/Bloomberg

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