NEW YORK Citigroup said Wednesday that it will cut 11,000 jobs, a bold early move by new Chief Executive Officer Michael Corbat. The cuts amount to about 4 percent of Citi’s work force of 262,000.
The bank did not spell out how many of the jobs will be in the United States. Most of them, about 6,200, will come from Citi’s consumer banking unit, which handles everyday functions such as branches and checking accounts.
Citi said that it will sell or scale back consumer operations in Pakistan, Paraguay, Romania, Turkey and Uruguay, and focus on 150 cities around the world “that have the highest growth potential in consumer banking.”
About 1,900 jobs will come from the institutional clients group, which includes investment banking.
The company will also cut jobs in technology and operations by using more automation and moving jobs to “lower-cost locations.”
Citi said it expects the cuts to save $900 million next year, and slightly more in the following years. They will be a drag in the short term. Citi said it expects to record pre-tax charges of about $1 billion in the fourth quarter.
Read tomorrow's Arkansas Democrat-Gazette for full details.