Citigroup Inc. has started job cuts this quarter that will affect nearly 4,500 people, chief executive Vikram Pandit said on Tuesday.
A bank spokesman told National Mortgage News “We are not commenting on the regions or businesses affected,” adding, “As part of our ongoing efforts to control expenses, we are making targeted headcount reductions in certain businesses and functions across Citi."
In the third quarter residential fundings by CitiMortgage fell 14% compared to the same period a year ago, but compared to 2Q were up a handsome 42%, according to figures compiled by NMN and the Quarterly Data Report.
The company will record a charge of about $400 million in the fourth quarter for severance and other expenses related to these cuts, Pandit said during a presentation at a Goldman Sachs conference. The job eliminations will be completed over the next few quarters.
This is higher than what was previously forecast. Last month it was reported that Citi might eliminate 3,000 jobs.
Among residential servicers, CitiMortgage ranks fourth nationwide with $562 billion in contracts.
--Paul Muolo also contributed to this report
