Citi cuts 2,000 more jobs, severance costs hit $650 million

New York: Citigroup trimmed headcount by another 2,000 jobs in the third quarter, bringing the firm’s total severance charges for the year to $650 million.

The company has cut about 7,000 positions so far this year, Chief Financial Officer Mark Mason said on a conference call with analysts discussing earnings. That compares with the $450 million in charges the bank had recorded at the end of June, which Mason said at the time covered about 5,000 dismissals.

“Headcount’s coming down associated with those repositioning charges,” Mason said, noting the charges the firm recorded so far this year don’t encapsulate the reorganization that Citigroup announced last month - a revamp that will refocus the firm on five key businesses.

Citigroup has said that the overhaul will lead to more job cuts, but hasn’t yet put a number on the level of layoffs.

Despite the cuts, firmwide headcount has actually remained flat for the past four quarters at 240,000 employees. The bank has added technology staffers and other employees to help with its efforts to resolve a pair of consent orders the firm received from regulators.

Citigroup’s expenses rose 6 per cent to $13.5 billion in the third quarter, less than analysts anticipated. The bank continues to expect full year expenses of $54 billion, according to an earnings presentation.