Citigroup to Eliminate More Than 11,000 jobs

Citibank branch
By CHRISTINA REXRODE


NEW YORK -- Citigroup (C) said Wednesday that it will cut 11,000 jobs, a bold early move by new CEO Michael Corbat. The cuts amount to about 4 percent of Citi's workforce 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 like 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 approximately $1 billion in the fourth quarter.

Job cuts have grown common in banking today as companies struggle under new regulations and deal with nervous customers and ire from both lawmakers and customers miffed about industry sins that helped cause the 2008 financial crisis.

In a statement, Corbat said the bank remains committed to "our unparalleled global network and footprint." However, he added: "We have identified areas and products where our scale does not provide for meaningful returns."

He promised that the bank would reduce "excess capacity and expenses, whether they center on technology, real estate or simplifying our operations."

Corbat became CEO in October after his predecessor, Vikram Pandit, stepped down. Pandit had reportedly clashed with the board over the company's strategy and its relationship with the government.

While the job cuts are among the first major moves by Corbat, they are in line with Pandit's blueprint.

Citi nearly collapsed during the financial crisis and had to take two taxpayer bailout loans. It has been shrinking ever since, shedding units and trying to find a business model that's more streamlined and efficient.

The paring hasn't always gone as well as Citi hoped. This fall, for example, when Citi negotiated the sale of its stake in the retail brokerage Morgan Stanley Smith Barney, it got far less than it wanted from the buyer, Morgan Stanley.

Corbat said Citi "has come a long way over the past several years."





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Stefanie Carter

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December 06 2012 at 3:50 PM Report abuse rate up rate down Reply
Frankie

Why are conservatives so stupid?

December 06 2012 at 7:59 AM Report abuse +1 rate up rate down Reply
1 reply to Frankie's comment
freethedems2012

Freakie Frankie is too stupid to know the difference.

December 09 2012 at 3:47 PM Report abuse rate up rate down Reply
abassman1945

Don't worry I am sure tne new CEO will have a fat bonus, say well over 100 million, bankers are the the Jimmy Stewards of It's a Wonderful Life, more like Dante's Inferno.

December 06 2012 at 6:50 AM Report abuse +3 rate up rate down Reply
ch112170

You clowns spewing untruths about Obama being the cause of Citi laying off peole. Did you even read the article???? Citi bank and its greedy, irresponsible managers, CEOs were in trouble WAY BEFORE Obama. Hell they got 2 bailouts! That right there alone should be the root of your faux, GOP puppet blown outrage! How are they gonna take tax payer bailout money and then turn around and lay off its workers all while making record profit and giving record bonus'. You GOP clowns need to read and research things before you attack Obama. I can only wish that you walk in the shoes of those being laid off right now! Romney=Bush! Get over it! Obama is turning this GOP caused recession around! It would be faster if the GOP obstructionist would get out of the way and if you idiot puppets stop voting them in office! Geez!

December 06 2012 at 6:48 AM Report abuse +3 rate up rate down Reply
jmg62

"Well, 's long as we've got those BONUS'S all lined up - SCREW 'EM! Romney let us down and we gotta SCREW all the folks that suck down our QUARTERLY PROFITS! I'm building me a dock-house for my yacht man and I gotta have that BONUS!!! LAY 'EM OFF! LAY 'EM ALL OFF! Just more mouths to feed! Look at Walmart! Payin' those folks to work and the lazy son's o' beeches are STILL suckin'on the cow's teet to get Food Stamps! They need go out and get themselves another job! Always WHINING about somethin'! Not like us. We got it MADE! We got McConnell and Boehner all runnin' for the Hills! Cut them off in a heartbeat and they KNOW it! Fat-Rat Hosers! Heehee- hawhaw! They're playin' it GREAT! Looked like Boehner was actually gonna CRY! Oh, man - surprised someone didn't come up and SLAP him cross the face! McConnell seems to be running out of different ways to say the same idiotic sh*t over and over and over - without actually SAYING ANYTHING - better get him some new "SPIN" people to work with! And what about Cantor? You sure he ain't,..ya know? - One of "them"? Bet some qwueer would like to shove a hard n' fast one in his tight hole! He's just waiting for Boner to have a nervous breakdown! Yep - get those deadwood idiots out of the bank. They don't do deek anyhow! Hey Bob, where you going on vacation this year with that new Cherokee Ticonderoga you've been taken lessons to fly? Gonna put your mistress up too? You'll have the cash now! Teehee! Business AS USUAL! That's how we LIKE IT!

December 06 2012 at 4:23 AM Report abuse +1 rate up rate down Reply
yearsocrapleft

LIKE THE TERRORIST MUSLIM CLOWNS SAYS....LET THE COUNTRY GO INTO DEPRESSION ... NOW COME BUY OUR CHINESE JUNK FROM OUR STORES ,CAUSE AFTER CHRISTMAS THERE WILL BE "MASSIVE"!!"MASSIVE' LAYOFFS N YOU CAN BLAME YOUR MUSLIM CLOWN N DUMMYCRAPS FOR '"OBSTRUCTING" OUR AMERICAN RECOVERY............THESE 11,000 LAYOFFS ARE JUST A DROP IN THE BUCKET

December 06 2012 at 4:01 AM Report abuse -4 rate up rate down Reply
yearsocrapleft

WITH THE TERRORIST MUSLIM CLOWN N DUMMYCRAPS "STILL" OBSTRUCTING AMERICAS RECOVERY , WE ARE SLOWLY SINKING INTO THE MUSLIM CLOWNS "GREAT DEPRESSION"' ,N THEN N ONLY THEN WE WILL PUT A STOP TO THIS TERRORIST MUSLIM CLOWNS NONSENSE. ! ! !

December 06 2012 at 3:14 AM Report abuse -5 rate up rate down Reply
yearsocrapleft

TAKE ALL YOUR MONEY OUT OF YOUR BANK ACCOUNTS N CLOSE ALL ACCOUNTS ,CAUSE THIS TERRORIST MUSLIM CLOWNS "GREAT RECESSION" WE ARE IN TODAY WILL SOON BE HIS "GREAT DEPRESSION"~~BUY CANNED FOOD , WATER , GUNS , N BULLETS . ! ! !

December 06 2012 at 3:02 AM Report abuse -5 rate up rate down Reply
jdyhyt

If they weren't so sure that they had bought them a Republican president they could have done all this before the election and Obama may not have won. Now they are all just throwing a hissy fit because they did not get their way.

December 06 2012 at 12:07 AM Report abuse +1 rate up rate down Reply
GOOD LUCK TODAY!

This is obamas fault so i dont want to hear it from the obama lovers that it is not. If citi said that they were hiring 11k people all of the obama lovers would praising him and claiming that the reason for the massive hiring is because of his politics.

December 05 2012 at 10:22 PM Report abuse -2 rate up rate down Reply