Citigroup cuts 8,000 jobs

CITIGROUP, the banking giant to be formed out of the $60bn (pounds 36bn) merger between Citicorp and Travelers, the parent group of Salomon Smith Barney, is planning to cut 8,000 jobs or 5 per cent of its worldwide staff this year with further cuts to follow.

The merger, agreed in April, has yet to be formally approved. Both banks have seen their shares tumble as a result of the global financial turmoil, slashing the value of the merger. A spokesman for Citicorp was quoted as saying that the figures were "directionally accurate".