Citigroup Considering 15,000 Dismissals

American multi-national Citigroup bank is considering cutting down the number of its employees throughout the world by 15,000.

American multi-national Citigroup bank is considering cutting down the number of its employees throughout the world by 15,000, as a part of the business restructuration plan directed at rationalisation and reduction of total expenses, the European issue of Wall Street Journal announced on Monday.

As it states, restructuration costs would amount to a billion dollars, according to this plan.

Citigroup plans to cut down the number of their total number of 327,000 employees by at least five percent. One of the methods they are thinking about is that new employees are not to be taken on after the existing leave the company. Yearly, between 30,000 and 50,000 employees leave this groupation.

-The stakes for Citigroup director Charles Prince are high, seeing how nervousness rises within and outside the company, concerning its fast-growing expenses, which lessens profit and decreases share prices, the Wall Street Journal points out.

Among the problems management of this company lists are exaggerated number of hierarchy levels and too large fixed costs due to technology multiplication. This groupation is also considering better ways to use its property, one of which is move of expensive New York locations to places with lower real estate prices.

This groupation`s operative expenses grew by 15 percent in 2006, to 52 billion dollars. According to Wall Street Journal, investors and analysts expect cutting down of these expenses by two billion dollars per year.

Citigroup is considered to be one of possible bidders for the Dutch ABN Amro bank. The British Barclays has also shown interest for it.