“For his efforts, Mr. Pandit accepted a $1-a-year salary — although Citigroup’s board handed him a retention package worth at least $23.2 million earlier this year.”
Citigroup to Lay Off 4,500 Workers
Facing stalling growth prospects around the globe, Citigroup’s chief executive, Vikram S. Pandit, said on Tuesday that the bank would lay off 4,500 workers in the coming months.
Citi will also take a $400 million charge in the fourth quarter to cover the severance and other costs related to the downsizing effort, which will reduce the bank’s work force by about 2 percent, to 262,500 employees. Citi now has roughly 100,000 fewer employees than it did at the end of 2007, before the worst of the financial crisis.
Most of the job losses will come from Citi’s back-office and investment banking operations. Its Wall Street-related business has been hard hit by a slowdown in trading volume amid the turmoil in Europe. But nearly every part of Citi’s sprawling businesses will face cuts.