Citigroup chief executive Vikram Pandit announced Tuesday that the bank would cut 4,500 jobs as it tries to cut costs in the face of tougher market conditions.
"We have started a firm-wide reduction of headcount this quarter that will affect roughly 4,500 positions and will be completed over the next few quarters," Pandit told a industry conference.
But the layoffs will come at a stiff price for the company.
"We anticipate recording a charge in the fourth quarter for severance and other expenses related to this of approximately $400 million," he said.
While income for the bank leapt in the third quarter, that was largely thanks to a one-off change in credit costs.
Revenue was basically flat, amid what Pandit called "a challenging economic environment."