Citigroup To Cut 11,000 Jobs Worldwide To Save £0.6bn In Expenses

Banking Bloodbath Begins As 11,000 Jobs Go At Citigroup

Consumer bankers at Citigroup will be looking over their shoulder for the next few months after the bank announced it will cutting 11,000 jobs worldwide, with most of the jobs being lost in its consumer banking division.

In a statement released on Wednesday, the bank said the "repositioning actions" were needed to reduce expenses and improve efficiency across the company.

Approximately 35% of the repositioning charges are expected to be incurred in Global Consumer Banking, resulting in a sacking of around 6,200 positions.

Of those, 40% will come from the operations and technology functions that support the business, resulting in a scaling back of consumer business in Pakistan, Paraguay, Romania, Turkey and Uruguay.

Another 1,900 jobs will go in securities and banking, and transaction services. Branch reductions are also on the cards, with Citi branches in Greece, Spain, Brazil, Hong Kong, Hungary, Korea and the United States to be affected.

It is unclear if jobs will be lost in the UK at the time of reporting.

Citi predicts it will pay out pre-tax charges of approximately $1 billion (£0.6bn) in the fourth quarter of 2012 and approximately $100 million (£62m) of related charges in the first half of 2013.

The total headcount reduction equates to 4% of its overall workforce, according to Reuters. This huge reduction is the first major action to restructure the company since directors named Michael Corbat chief executive officer in October.

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