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Wednesday, December 5, 2012

Citigroup to slash 11,000 jobs worldwide

In a major restructuring exercise, global banking giant Citigroup today announced that it will cut 11,000 jobs worldwide to save nearly $1.1 billion in expenses annually from 2014.

The repositioning exercise comes two months after bank’s former CEO Vikram Pandit left the company unceremoniously

The restructuring would result in a “reduction of more than 11,000 positions,” a statement by Citi said, adding that “these actions are logical next steps in Citi’s transformation.”

“While we are committed to—— and our strategy continues to leverage — our unparallelled global network and footprint, we have identified areas and products where our scale does not provide for meaningful returns. And we will further increase our operating efficiency by reducing excess capacity and expenses, whether they centre on technology, real estate or simplifying our operations,” Citi’s Chief Executive Officer Michael Corbat said.

Citi said the repositioning would generate $900 million of expense savings in 2013.

The annual savings will exceed $1.1 billion annually beginning in 2014, it added.

Citi also expects the repositioning actions to have a negative impact on annual revenues of less than $300 million.


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