Citigroup is set to merge two of its bank holding units into the parent company structure. In addition to this cost-saving move, the US financial services giant has also revealed plans to cut jobs at its corporate and investment bank.
As well as bringing Citigroup Holdings Company and Citicorp into Citigroup Inc, the New York-based bank stated that it would consolidate capital markets operations as part of an overall effort to simplify its structure. The reorganization, which is subject to regulatory review, is expected to be completed in the third quarter of 2005.
Reports suggest that Citigroup will shed as many as 1,000 jobs from its corporate and investment banking business where expenses have spiraled through 2004. Charles Prince, chief executive of Citigroup, is believed to be ready to make changes to any part of the company not focused on consumer or corporate banking.
The efforts of Citigroup to streamline its corporate structure follows last week’s news that Deutsche Bank was to cut 6,400 jobs in an attempt so save E1.1 billion in costs.