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Citigroup cuts 3,500 jobs
August 14, 2001: 1:08 p.m. ET

Financial conglomerate takes $209M 2Q charge, including severance
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NEW YORK (CNNfn) - Citigroup Inc. is slashing 3,500 jobs, mostly in its global corporate and consumer businesses, as the diversified financial services company attempts to cut costs, according to a filing with the U.S. Securities and Exchange Commission.

The job cuts, about 2,150 of which will occur in the United States, will be implemented over the next 12 months, the company said in the filing Monday.

Citigroup said it recorded a $209 million charge in its second quarter as a result of the job cuts and other restructuring activities. About $177 million is related to employee severance. The cuts follow an earlier plan to cut 1,200 jobs in the first quarter, resulting in a $110 million charge. About 500 of the earlier cuts were implemented through the end of the second quarter.

The banking, insurance and financial services company has about 240,000 employees worldwide.

Shares of Citigroup's (C: down $0.21 to $48.92, Research, Estimates), a component of the Dow Jones industrial average, slipped slightly in midday trading Tuesday.

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While the company has been cutting jobs it also has continued to make acquisitions, most recently the $12.5 billion purchase of Banamex-Accival, the No. 2 Mexican bank known as Banacci. graphic


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Citigroup to acquire Mexico's Banamex - May 17, 2001

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Citigroup announces layoffs - April 3, 2001



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