Citigroup Planned Cutting Down 11000 Jobs to Save Over 1 Billion Dollar Annual Expenses

In order to save over 1 billion dollar in a year, Citigroup on 5 December 2012 announced that it was planning to cut down 11000 jobs, mainly in the technology and operations segment. This would help tightening expenses over the company.

Citigroup, the New York-based bank planned to realise 900 million dollar savings in the year 2013, followed by over 1.1 billion dollar annual savings starting in 2014. The CEO of Citi declared back in October 2012 that the focus would be on the operational efficiency and therefore layoffs should not come as a surprise.

The cuts which would go around would result in pre-tax charge amounting to 1 billion dollar in fourth quarter of 2012 as well as 100 million dollar in first six months of 2013. This in turn would equip Citigroup with the flexibility which is required for reinvesting in the profit-generating businesses as well as emerging markets.

Maximum cuts or exactly 6200 positions would be from the consumer banking businesses of Citi with around 40 percent layoffs affecting mainly technology and operations.

Citi declared that it would either completely sell or considerably scale back the consumer operations in countries like Uruguay, Paraguay, Romania, Turkey and Pakistan. On the other hand, it has planned to enhance its hold in metropolitan areas with a focus on 150 cities that have highest potential of growth.

Certain Citi branches would be affected in U.S., Brazil, Hong Kong, Korea and Hungary. However, Citi announced that there would be continuous investment in the franchises in these countries and the service would be finished with over 4000 retail branches across the world.  

1900 jobs would be slashed from Citi’s securities as well as banking and also transaction services group. 350 jobs would be cut from Spain and Greece as Citi Holdings decided to bring down its branches in Eurozone areas which are struggling.  

Citi in the meanwhile also declared that this transformation would restructure client coverage model in the banking sector while also improving the productivity in markets business, mainly in area of equity.

The job cuts, Citi announced should affect the annual revenues by less than 300 million dollar. After the announcement, the Citigroup shares reached up to around 4 percent on 5 December 2012 morning to 35.63 dollar.