NEW YORK — Citigroup Inc. Chief Executive Vikram Pandit said the bank plans to eliminate 4,500 jobs, starting in the fourth quarter.
The job cuts will be completed "over the next few quarters" and Citi will take a charge of about $400 million in the fourth quarter tied to those cuts, Pandit told investors during a Goldman Sachs conference in New York.
The CEO also said that the bank would take a $200 million charge tied to the valuation of Citi's own debt if credit spreads remain as they were at market close Monday. "I should note, however, that this number can vary significantly and will be based on our spreads in the last day of the quarter," Pandit said.
In addition, tightening credit spreads will likely result in a hedging loss "of roughly $300 million," Pandit said.
And as Japan lowers its corporate tax rates, Citi will be booking a valuation adjustment of about $300 million against its deferred tax assets there, Pandit said.
Pandit said the capital-markets business so far in the fourth quarter performed in line with the results of the third quarter. Pandit also reiterated that the bank expects to return capital to shareholders next year.
