Citigroup has come out to clarify that Singapore will not be significantly affected by the group’s global layoffs.
At a news briefing on Friday, it said that as far as Singapore is concerned, it expects the attrition rate to stay normal.
No bonus cuts are expected and staff will still be paid salary increments.
Citigroup said that overall, Asia including Singapore is positioned for good growth.
Like most big financial names in the US, Citigroup has been hit by the sub-prime mortgage crisis - taking billions of dollars in write-downs.
Citigroup said earlier this week that it was going to cut 4,200 jobs. That sparked speculation that it would reduce headcount in Singapore, but the group stressed that those fears are unfounded.
Piyush Gupta, Country Officer of Citi Singapore, said: “The truth is the large part of this reduction is likely to be in the Western world because growth in Asia has been spectacular and growth in Singapore particularly has been very strong.”
Citi employs close to 375,000 staff worldwide - which means the cuts will affect only about one per cent of its global headcount.
It saw a 33 per cent jump in revenue from the Asia-Pacific in 2007, with profits climbing 46 per cent to US$4.6 billion.
For Singapore alone, revenue rose 35 per cent, while headcount increased by five per cent to 9,000 people. Citi said it is expecting to see growth rates of 20 per cent in Singapore in 2008. - CNA/vm
Source : Channel NewsAsia - 18 Jan 2008