Citigroup To Slash 11,000 Jobs

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NEW YORK (CNNMoney) — Citigroup announced it will cut 11,000 jobs as part of plan to cut costs, the first major initiative from the bank’s new CEO, Michael Corbat.

The bank will also take a $1 billion pre-tax charge during the fourth quarter, and approximately $100 million in related charges during the first half of 2013 as part of the plan, which is expected to save $900 million in in 2013 and more than $1.1 billion annually beginning in 2014.

“These actions are logical next steps in Citi’s transformation,” said Corbat, who took the help after former CEO Vikram Pandit stunned investors when he announced his immediate departure in mid-October. “While we are committed to — and our strategy continues to leverage — our unparalleled global network and footprint, we have identified areas and products where our scale does not provide for meaningful returns.”

The bank’s streamlining plans will impact about 1,900 jobs in the institutional clients group and 6,200 positions in the global consumer banking division, which includes scaling back operations in Pakistan, Paraguay, Romania, Turkey and Uruguay. Citi said it will also close some of its bank branches in Brazil, Hong Kong, Hungary, Korea and United States.

The bank will also eliminate 350 positions from Citi Holdings, while the remaining jobs reductions will be in the company’s operations and technology division and global positions.

The total reductions impact about 4% of Citigroup’s workforce, which stood at 261,000 full-time employees at the end of September.

Shares of Citigroup were up about 4% in early trading. Other bank stocks, including Bank of America, Goldman Sachs, Morgan Stanley were also up sharply.

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