Citigroup not cutting jobs in S’pore

Citigroup not cutting jobs in S’pore

US bank reorganises Asia-Pac operations

Tuesday • August 19, 2008


Conrad Raj


editor-at-large


conrad@mediacorp.com.sg





CITIGROUP, which employs over 8,500 people in Singapore, is not cutting jobs here following the banking giant’s decision to reorganise its Asia-Pacific operations into four geographic areas supported by seven product groups, a Citi spokesperson told Today yesterday.

“This is not a job cutting exercise. It is a new structure that will ensure we deliver the full benefits of Citi to our clients, positioning us well for thefuture ... Our total workforceremains steady at 70,000 in theAsia-Pacific and we continue to hire in growth areas,” the spokesperson said, Citigroup, the largest bank in the United States by assets, has eliminated over 14,000 jobs worldwide since the beginning of the year.

The new structure, which was announced yesterday, divides Citi’s Asia-Pacific region into four geographic clusters: Japan, North Asia, South Asia and South-east Asia-Pacific — each led by a chief executiveofficer, who will oversee all Citi businesses in the respective geographic areas and report to Citi Asia-Pacific chief executive Ajay Banga. Mr Banga replaced23-year Citi veteran Robert Morse on August 1.

They will be supported by seven “custom-tailored” product and coverage groups: Consumer banking and global cards; corporate and commercial bank; global transaction services; investment banking; markets; wealth management; and alternative investments.

The move follows the call by Citigroup chief executive Vikram Pandit’s for local chief executives to make independent decisions without having to wait for approval from the headquarters in New York.

“These changes to the Asia-Pacific organisation will strengthen partnership between geographies and businesses. It will leverage local expertise and thinking, eliminate management layers and provide growth opportunities for our best people,” saidMr Banga as he tries to refocus on Citi’s fastest growing and one of its most profitable regions.

The Asia-Pacific region contributed nearly 14 per cent of Citi’s revenues of US$81.7 billion ($115 billion), a9-per-cent decline in a year battered by the US mortgage crisis thatresulted in US$55.1 billion in losses and writedowns for the bank.

Still, former Singapore country head Piyush Gupta said in April this year that “at US$4.6 billion, Asia was the top net contributor by region for Citi globally in 2007 ... Actually,given the write-offs we took in our portfolio in the US, we made more money in Asia than the entirecompany did in 2007”. Citi’s operations here have done especially well with the Singapore branch reporting a 35-per-cent jump in net profits to $683.5 million for last year. After the reshuffle, Mr Gupta will now lead Citi’s South-east Asia Pacific cluster.

As a result of its sub-primeproblems, Citi’s shares have plunged 37 per cent in New York this year to around US$18.55.

In January, the Government of Singapore Investment Corporation (GIC) pumped in some $9.8 billion for a 4-per-cent stake in Citi.

Copyright MediaCorp Press Ltd. All rights reserved.