US bank Citigroup to cut 11,000 jobs

The US bank Citigroup says it plans to cut 11,000 jobs in an effort to improve efficiency, with most of the cuts in its global consumer banking division.

Citigroup announced on Wednesday that it will reposition its company to cut about four percent of its total staff in a move to save as much as USD1.1 billion a year in expenses, and to reduce annual revenues by less than USD300 million.

“Due to this repositioning, Citi expects to record pre-tax charges of approximately USD 1 billion in the fourth quarter of 2012 and approximately USD100 million of related charges in the first half of 2013,” the company said.

The move aims to “further increase operating efficiency by reducing excess capacity and expenses, whether they center on technology, real estate or simplifying our operations.”

Approximately 6,200 job cuts will occur in the consumer banking division from some of the poor performing countries such as Pakistan, Turkey, Paraguay, Uruguay and Romania, with further limitations in the United States, Brazil, Hong Kong, South Korea, and Hungary.

The move comes after Citigroup board members introduced Michael Corbat as the new chief executive officer in October, seeking to shrink the company for not earning satisfactory returns.