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Search forFears at Egg over owner's plan to shed 52,000 jobs
Tuesday, November 18, 2008, 07:30
Citigroup employs about 12,000 people in its UK businesses, the majority in London and Derby, with Egg based at Pride Park.
The American banking giant, which took over Egg in a multi-million-pound deal in May last year, said the losses would fall "particularly heavily" in London and New York.
The cut – along with previously announced job losses of about 22,000 – will leave it with a global total of 300,000 employees in the near term.
The company said some of the job losses could be achieved through natural turnover.
A spokeswoman for Egg, which employs about 1,700 people in the city, said she could not yet comment on whether there would be job losses at the Pride Park offices.
A spokesman from Citigroup also declined to comment.
The company has posted four straight quarterly losses, including one of £1.9bn during the third quarter of this year.
Speaking at a business forum in Dubai, Citigroup chairman Win Bischoff said: "What all of us have done – and perhaps injudiciously – we've added a lot of people over... this very benign period," he said.
"If there is a reversion to the mean... those job losses will fall particularly heavily on the financial sector."
Of the 52,000 job losses, about half are understood to already be accounted for with the sale of Citigroup's German retail banking business.
The remaining jobs would be shed by the first half of 2009.
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