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Citigroup to cut 11,000 jobs and scale back global operations

The jobs will be cut in a move to boost efficiency, as Citi focuses on 150 cities worldwide that have the highest growth potential in consumer banking.

Image: Mark Lennihan/AP/Press Association Images

CITIGROUP HAS ANNOUNCED that it would cut more than 11,000 jobs in a move to boost efficiency, with most of the cuts in its global consumer banking division.

The company said:

Due to this repositioning, Citi expects to record pre-tax charges of approximately $1 billion in the fourth quarter of 2012 and approximately $100 million of related charges in the first half of 2013.

Around 6,200 of the job losses will be in the consumer banking division as Citi pushes a strategy of focusing on the 150 cities around the world “that have the highest growth potential in consumer banking.”

As a result, Citi said it will “significantly” scale back operations in Pakistan, Turkey, Paraguay, Uruguay and Romania. Other markets affected by the cuts include the United States, Brazil, Hong Kong, South Korea, and Hungary.

“While we are committed to – and our strategy continues to leverage – our unparalleled global network and footprint, we have identified areas and products where our scale does not provide for meaningful returns,” said Michael Corbat, the huge bank’s new chief executive.

And we will further increase our operating efficiency by reducing excess capacity and expenses, whether they center on technology, real estate or simplifying our operations.

The actions came seven weeks after Corbat was named chief executive following the shock resignation of Vikram Pandit and Pandit’s top aide in an unexpected board move against them.

- © AFP, 2012

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