Citigroup To Cut 53,000 More Jobs

November 17, 2008 5:21 p.m. EST

New York, NY (AHN) - Citigroup Inc. announced it will cut 53,000 jobs over the next few quarters. The cuts come in addition to the 23,000 jobs the bank already cut in October.

The move by Citigroup ranks as the second largest layoff on record. The 60,000 employee layoff by IBM in 1993 ranks as the largest ever, according to Challenger, Gray & Christmas.

The bank plans to sell some business units as part of the job reduction. Citigroup is already selling its German retail banking unit and Citi Global Services. The two businesses will provide a reduction of 18,000 jobs. The remaining cuts will come from layoffs and attrition.

The move represents a 15 percent reduction in Citigroup's total workforce. The job cuts come as part of the bank's plan to reduce expenses by nearly 20 percent in 2009.

Citigroup recently posted a $2.8 billion loss in the third quarter, its fourth consecutive quarterly loss.

Shares of Citigroup fell 4.6 percent on the news to $9.07 on Monday.