Citigroup, Inc. announced it is cutting
more than 11,000 jobs, which is 4% of its workforce.
The Wall Street Journal
reports that this is the first major implementation of plans set by new CEO Michael Corbat who took over in October.
The company has been making major cost-cutting plans to shore up revenues.
More than 50% of the layoffs will be in the consumer banking unit. 84 branches will be closed around the world, 44 of which are in the U.S. The bank said it will drastically scale back consumer lending in Turkey, Uruguay, Pakistan and Paraguay. 6,200 of the jobs lost will be in the unit that services those four countries.
The rest of the cuts will be in the securities and banking division. 1,900 jobs will be cut from Citigroup. Jobs at risk are in operations and technological support. The corporate services and real estate division will cut another 2,300 jobs. Citigroup says the cuts will save the company nearly one billion dollars each year, beginning in 2014. Revenue will be reduced by around $300 a year.