Citigroup is poised to announce a broad restructuring that could impact 26,000 jobs throughout its operations - including its investment bank.
Media reports say Citigroup Chief Executive Charles Prince ordered a wide-ranging review of the company's operations in response to intense investor pressure to reduce expenses and increase its stock price. The Wall Street Journal reports Chief Operating Office Robert Druskin, who is overseeing the review, will report his conclusions to Prince by the end of the week. The plan would be announced publicly the day before Citigroup's annual meeting on April 17. On Tuesday, the New York Times said the realignment 26,000 workers will be either laid off or reassigned. The newspaper said Citigroup will eliminate between 10,000 and 12,000 jobs during 2007, and 14,000 positions in high-cost areas will be either eliminated through attrition or relocated.
Speaking to employees in India, Prince said most of the bank's future growth will come outside of the U.S., the Times reported earlier. The high-cost centers include New York, London and Hong Kong.
According to the Journal, cuts would be broad, impacting both investment and consumer banking as well as technology operations. Management at the investment bank may be squarely in Prince's sites, as he's previously discussed "excessive layers of management" in the unit, the Journal notes.
Mercer Oliver Wyman, a division of Mercer Management Consulting, is assisting in the review and is looking at all layers of management for possible cuts, the newspaper said.
Updated March 27, 2007