Citigroup shares soar on staff cut announcement

<p>Shares in Citigroup have soared on the New York Stock Exchange on news the bank is making widespread redundancies.</p>

Shares in Citigroup have soared on the New York Stock Exchange this afternoon (December 5th), on news the bank is cutting 11,000 workers worldwide.

The move comes just two months following the shock resignation of former chief executive Vikram Pandit, who was succeeded by Michael Corbat.

Citigroup says it is making these redundancies – which will see its headcount shrink by around four per cent – as part of its efficiency drive, with most of the positions being lost from its consumer banking division.

The bank claims the decision would cost it around $1 billion (£621 million) in pre-tax charges, with these being recorded it its fourth-quarter figures for the year.

It also said it would add a further $100 million in charges to the first-half profits for 2013.

On Wall Street in New York at 16:30 GMT, Citigroup appreciated by 4.2 per cent to a value of $35.73 – a rise of $1.44.

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