Need to Know
December 5, 2012 9:52 AM
Obummer Economy Update: Citigroup to cut more than 11,000 jobs
Posted by Staff
The AP reports:

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

The bulk of the cuts, 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."

The bank did not say how many jobs it will cut in the United States.

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

Investors appeared to like the move. They sent Citi stock up more than 4 percent on a day when most bank stocks were up only slightly. Citi was up $1.48 at $35.77 in midday trading. Facebook Fark Furl
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