(Image source: Bloomberg)
BY LOGAN TITTLE
Citigroup announced Wednesday it will cut 11,000 jobs as part of a plan to cut costs. Here’s CNN.
“The New York-based company said the cutbacks are part of a broad global effort to reduce expenses and improve efficiency.”
The bank says about half of the cuts will occur in its global consumer banking unit. Bloomberg reports this is just the first initiative from the bank’s new CEO, Michael Corbat, to cut costs.
Bloomberg explains, since taking over in October, Corbat is “responding to an industry wide slump in trading and investment banking, stiffer capital requirements and Europe’s debt crisis.”
Corbat said in a statement— “These actions are logical next steps in Citi’s transformation … While we are committed to … our unparalleled global network and footprint, we have identified areas and products where our scale does not provide for meaningful returns.”
The bank will also reportedly take a pretax charge of about $1 billion in the fourth quarter and $100 million related charges in the first half of 2013—which is expected to save an estimated $1.1 billion annually starting in 2014.
The New York Times explains the bank has had a rough time bouncing back from the financial crisis, taking a $45 billion lifeline from the federal government and significantly reducing its expenses to cut troubled assets.
Citigroup also announced Wednesday it will close 84 branches worldwide.
(Image source: Bloomberg)
BY LOGAN TITTLE
Citigroup announced Wednesday it will cut 11,000 jobs as part of a plan to cut costs. Here’s CNN.
“The New York-based company said the cutbacks are part of a broad global effort to reduce expenses and improve efficiency.”
The bank says about half of the cuts will occur in its global consumer banking unit. Bloomberg reports this is just the first initiative from the bank’s new CEO, Michael Corbat, to cut costs.
Bloomberg explains, since taking over in October, Corbat is “responding to an industry wide slump in trading and investment banking, stiffer capital requirements and Europe’s debt crisis.”
Corbat said in a statement— “These actions are logical next steps in Citi’s transformation … While we are committed to … our unparalleled global network and footprint, we have identified areas and products where our scale does not provide for meaningful returns.”
The bank will also reportedly take a pretax charge of about $1 billion in the fourth quarter and $100 million related charges in the first half of 2013—which is expected to save an estimated $1.1 billion annually starting in 2014.
The New York Times explains the bank has had a rough time bouncing back from the financial crisis, taking a $45 billion lifeline from the federal government and significantly reducing its expenses to cut troubled assets.
Citigroup also announced Wednesday it will close 84 branches worldwide.
