Citigroup Inc. the third-biggest U.S. bank, will consider further spending cuts at its securities unit after an investment of almost $1 billion in the business last year failed to boost revenue, Bloomberg reports.
The lender, which last week announced 1,200 job reductions to save $600 million this year at the Securities and Banking division, will “further restructure” if revenue doesn’t rebound in 2012, Chief Financial Officer John Gerspach said on a conference call yesterday. Profit at the unit fell 24 percent last year to $4.9 billion as Europe’s sovereign-debt crisis rattled world markets, New York-based Citigroup said last week.
“We are not oblivious to the fact that our cost structure cannot be justified by our current revenue,” Gerspach said. “While much of the current difficulty reflects market conditions, we equally have some management and execution challenges.”
Find out more at http://www.bloomberg.com/news/2012-01-24/citigroup-to-weigh-more-cuts-in-securities-unit-if-revenue-doesn-t-rebound.html
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