) is set to slash jobs in small-business operations. Revenue
slump in these operations prompted the company to come up with
this decision. However, the exact number of layoffs has not yet
been decided by the bank.
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Citi reported operating expenses of $13.8 billion in the
fourth-quarter of 2012, which climbed 5% year over year. The rise
came on the back of higher repositioning charges and elevated
legal and related costs, including a charge of $305 million
related to the agreement in principle reached with the Office of
the Comptroller of the Currency (OCC) and the Federal Reserve
Board pertaining to the independent foreclosure review process.
The latest job cut is expected reduce its expenses to some
In Dec 2012, Citi announced roughly 11,000 job cuts worldwide,
including 300 in the Mo. region. These were made in an effort to
reduce expenses and improve profitability. The company
anticipates making roughly $900 million of expense savings this
year and $1.1 billion in 2014, based on its restructuring
Amidst a challenging operating environment, lower returns and
stringent capital norms, many global banks are downsizing
businesses to meet the economic challenges. Apart from Citi,
Bank of America Corp.
Deutsche Bank AG
) are rightsizing businesses and slashing jobs to address revenue
Owing to a tepid economic recovery, revenue growth has become a
challenge. Therefore, to sustain and elevate profitability,
several banks are currently resorting to cost-reduction measures
including layoffs and bonus cuts. Until a recovery in the top
line occurs, such actions are anticipated to continue.
Citi currently retains a Zacks Rank #3 (Hold).