Vikram Pandit, Citigroup’s chief executive, has vowed to slash the beleaguered financial group’s cost base by up to 20 per cent, deepening fears that Wall Street and the City of London are about to be hit by tens of thousands of additional job losses.

Mr Pandit, who took over Citi in December, indicated cuts in operating exenses would not only come from reductions in the 370,000-strong workforce, but also from improvements in computer systems and a greater focus on core businesses.