http://www.finextra.com/fullstory.asp?id=18356

Information technology budgets at Citigroup are set to be slashed under a massive cost-reduction programme ordered by new CEO Vikram Pandit.

Pandit, who took over the helm of the listing US financial conglomerate in December, is preparing to cut up to 25,000 jobs and undertake a major re-alignment of the firm’s information technology and operations with the objective of excising 20% of the group’s cost base.

“It is clearly feasible for us to take 10, 15, 20 per cent off our cost base, especially in information technology and operations,” Pandit told the Financial Times.

We have to be careful with these kind of announcements in the respect of what is actually being cut, is it investment in new technologies? A reduction in operational costs? We’ll have to see, managing costs and maintaining service delivery can be a time consuming activity, an interesting read, do check it out.