Citibank (NYSE: C) to Lay Off 175 Employees in Credit Card Business and Wealth Management Group

Citibank (NYSE: C) will be laying off approximately 100 employees and an additional 75 employees in Citi’s personal wealth management group this week, according to several sources.

The most recent job cuts are part of a broader corporate restructuring effort at Citibank. As of  the 2^nd quarter of this year, Citibank had an official headcount of 279,000 employees, down from its peak of 375,000 employees in 2007.

The job losses in the credit card operations will be centered on “corporate” positions which are largely employees that do not work directly with clients. In its personal wealth-management group, layoffs will include branch-based financial advisers.

Samuel Wang, a spokesperson for Citigroup, released a statement saying, “These actions are difficult for everyone involved. For Citi Cards, this is part of implementing a new organizational model to better prepare the business against current economic and regulatory conditions and to capitalize on future opportunities to serve customers.” Wang continued, “For Citi Personal Wealth Management, this is part of a strategic shift to focus qualified financial advisers located in Citibank branches on providing more fee-based, investment advisory services.”

Last month, Citigroup posted a narrow third quarter profit, suggesting that the bank is still struggling to find a solid financial footing. Citi reported a total net income of $74 million during the 3^rd quarter, which came largely in part due to an $851 million gain from its securities-exchange efforts during the third quarter that left the Federal government owing a one-third stake in the bank.

Citibank has had several less than favorable earnings reports during the last several quarters because of its exposure to toxic securities that were a major cause of the credit crunch surrounding consumer-grade loans.

Citibank’s stock shares closed down 1.73% for the day ending at $3.97 per share.