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Citigroup to Cut 11,000 Jobs to Reduce Costs

9:33 AM, Dec 5, 2012   |    comments
A cyclist rides his bike past the Citigroup center in San Francisco (Getty)
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(USA TODAY) - Citigroup, the third-biggest U.S. bank, said Wednesday it plans to cut more than 11,000 jobs in an effort to reduce costs.

In a statement, New York-based Citi (C) says it will take a pretax charge of about $1.1 billion this quarter and expects savings in 2013 to be $900 million as part of a plan to eliminate more than 11,000 jobs.

In pre-market trading, Citi shares were up 3.2% to $35.40 a piece, after closing at $34.29 Tuesday.

"These actions are logical next steps in Citi's transformation," CEO Michael Corbat said in Citis's statement. "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 says about 1,900 jobs will be cut in its institutional clients group, an effort to "improve overall productivity in our markets business, especially in areas experiencing continued low profitability, such as cash equities.''

About 6,200 jobs will be eliminated from Citi's global consumer banking business, and another 2,600 jobs will disappear in the bank's operations and technology group and global functions.

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