Citigroup has told FOX Business that the 11,000 job cuts announced Tuesday - 4% of its workforce - won’t be the end of layoffs at the nation’s third-largest bank by assets, deemed 'too big to fail' by the U.S. government.
A Citi executive told FOX Business Tuesday: 'In the last quarter, we said on a Wall Street conference call that we would continue to seek ways to optimize. I don’t think anyone can come to the conclusion the bank is going to sit back and do nothing else'. The executive added Citigroup’s new chief executive, Michael Corbat, 'said in October he now wants to focus on operational efficiency, so the layoffs shouldn’t be a surprise'.
Another Citi exec told FOX Business: 'O’Neill (chairman Michael O’Neill) and Corbat are really focused on cutting out the excess in the bank. We’ve been living too long with too many layers, too many units not being able to or just not talking to each other. We’ve been living with dysfunction too long'.
The Citi exec added: 'We need to rationalize our operation - it’s one of the most top-heavy, bureaucratic organizations. Too many middle managers, too many layers'.
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