Dec. 5 - Citigroup is cutting 11,000 jobs worldwide to save $1.1 billion a year in expenses. Conway G. Gittens reports.
The Daily Digit today is 11,000. Citigroup is cutting 11,000 jobs around the world, which is about four percent of its staff. The hardest hit is the global consumer banking unit, which handles everyday functions in traditional branches and online. The bank plans to unload or scale back consumer operations in Pakistan, Paraguay, Romania and Uruguay, planning to shed 84 branches in five countries, with more than half of that in the United States. Other areas to see job losses include investment and corporate banking, transaction and corporate support and real estate. Citi Holdings is up for sale. The cuts are Chief Executive Michael Corbat's first major steps to reorganize the company since he took the reins in October after directors pushed out his predecessor, Vikram Pandit. Analysts aren't surprised. Corbat was introduced as CEO by Chairman Michael O'Neill. O'Neill is known in the banking industry for shrinking companies to eliminate businesses that are not earning satisfactory returns. Citigroup said in a statement that the job cuts are part of a reorganization that will reduce annual revenues by less than $300 million but save $1.1 billion a year.