Citigroup (C) CEO Vikram Pandit is expected to announce big jobt cuts at tomorrow’s much-anticipated town hall meeting. CNBC’s Charlie Gasparino says the number could go as high as 40,000:
Citigroup CEO Vikram Pandit plans to make a dramatic statement Monday morning about major cut backs in the struggling firm’s workforce aimed at calming market fears that the troubled financial services giant isn’t taking the steps necessary to address its many ills, which include a bloated cost structured that has sent shares of its stock reeling, people close to the company said.
These people say that as of Saturday afternoon the exact size of the cuts is not known, but it’s expected to be higher than the 23,000 cuts the firm made as of end of the third quarter to its workforce of approximately 350,000 worldwide. These people say the overall size of the cuts that Pandit will announce during a highly anticipated town hall meeting could add up to close to 40,000 depending on the number of asset sales, such as spinning off businesses the firm could pull off in addition to additional planned layoffs.
Let’s hope. Anything less than the kitchen sink will immediately bring out apt “rearranging the deck chairs” analogy. With the terrifying free-fall in Citi’s stock, there’s no time left for subtlety.
We’ll be covering the town hall LIVE at 8:00 AM tomorrow, so tune in then for the play-by-play.
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