Wednesday, October 22nd9.3°C
23840

Citigroup hacks 11,000 jobs

NEWCitigroup said Wednesday that it will cut 11,000 jobs, a bold early move by new CEO Michael Corbat. The cuts amount to about 4 per cent of Citi's workforce of 262,000.

The bank did not spell out how many of the jobs will be in the United States. Most of them, about 6,200, will come from Citi's consumer banking unit, which handles everyday functions like branches and checking accounts.

Citi said that it will sell or scale back consumer operations in Pakistan, Paraguay, Romania, Turkey and Uruguay and focus on 150 cities around the world "that have the highest growth potential in consumer banking."

About 1,900 jobs will come from the institutional clients group, which includes investment banking. The company will also cut jobs in technology and operations by using more automation and moving jobs to "lower-cost locations."

Citi said it expects the cuts to save $900 million next year, and slightly more in the following years. They will be a drag in the short term. Citi said it expects to record pre-tax charges of approximately $1 billion in the fourth quarter.

Job cuts are familiar in banking today as companies struggle under new regulations and deal with nervous customers and ire from both lawmakers and customers miffed about industry sins that helped cause the 2008 financial crisis.

In a statement, Corbat said the bank remains committed to "our unparalleled global network and footprint." However, he added: "We have identified areas and products where our scale does not provide for meaningful returns."

He promised that the bank would reduce "excess capacity and expenses, whether they centre on technology, real estate or simplifying our operations."

The Canadian Press


Read more Business News




Recent Trending




Today's Market
S&P TSX14312.07-235.64
S&P CDNX808.00-14.28
DJIA16461.32-153.49
Nasdaq4382.847-36.632
S&P 5001927.11-14.17
CDN Dollar0.8883-0.0012
Gold1243.70-1.80
Oil79.76-0.37
Lumber330.40+1.70
Natural Gas3.65-0.009

 
Okanagan Companies
Pacific Safety0.12+0.02
Knighthawk0.01-0.005
QHR Technologies Inc1.15-0.02
Cantex0.055-0.025
Anavex Life Sciences0.198+0.006
Metalex Ventures0.05+0.005
Russel Metals32.53-0.56
Copper Mountain Mining2.10-0.07
Colorado Resources0.145-0.005
ReliaBrand Inc0.013+0.001
Sunrise Resources Ltd0.05-0.01
Mission Ready Services0.405-0.055

 





FEATURED Property
17359941650 Pritchard Drive, West Kelowna, V4T 1X3
3 bedrooms 4 baths
$1,595,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Keep it rubber side down

This time of year, I always worry about which friends of mine will get caught going off the road in adverse weather conditions. With a little preparation most accidents can be avoided. Having won the...


Big bank predicts rate hike

Photo: Thinkstock.comThe end of record-low rates is nigh, according to one major bank, which has taken a stance and predicted when the Bank of Canada will raise its long-standing overnight rate. &ldq...


Experts share strategies in Kelowna

The third week in October is “Small Business Week”, a week dedicated to supporting local, small businesses. The week was designed to bring awareness to Canadians about the role small busin...

_








Member of BC Press Council


22707