Citigroup to shed 1,000 at Nikko

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(Agencies)
Updated: 2008-12-11 07:59

Citigroup Inc, the US bank that's eliminating 52,000 jobs worldwide, will shed about 1,000 workers at its retail brokerage unit in Japan, two company officials said.

The workers at Nikko Cordial Securities Inc, which employs about 7,000 people, accepted Citigroup's offer to take early retirement by a Dec 8 deadline, the officials said, declining to be identified because a public announcement hasn't been made.

Citigroup Chief Executive Officer Vikram Pandit plans to eliminate about one-seventh of the lender's global workforce of 352,000 through job cuts and asset sales after racking up more than $67 billion in losses amid the global credit crisis. The company is cutting jobs in investment banking and consumer finance in Japan and is selling its local trust banking unit.

"It's inevitable for Citigroup to downsize in Japan as the transaction volume of stock trading is being narrowed and the cancellation of investment trusts has increased," said Naoki Fujiwara, who oversees about $720 million at Shinkin Asset Management Co.

Still, "They have to maintain the bread and butter business for the future as it will be difficult and cost a lot to re-enter the Japanese market from scratch."

Nikko Cordial offered early retirement to employees over the age of 40 in a Nov 21 memo from President Eiji Watanabe, two people familiar with the situation said at the time. The offer includes about two years of pay, the people said.

Citigroup's Tokyo-based spokeswoman, Atsuko Yoshitsugu, declined to comment.