Citigroup, the third largest US bank, has said it is going to eliminate 11,000 jobs worldwide; that is about four percent of its total staff.
The move is intended to save as much as 840 million euros a year in expenses and it will cost Citi 760 million in charges this quarter.
It is the first major action to restructure the company since directors named Michael Corbat as the new chief executive in October.
“We have identified areas and products where our scale does not provide for meaningful returns,” Corbat said in a statement from the company.
“We will further increase our operating efficiency by reducing excess capacity and expenses,” he added.
Besides the job cuts, the reorganisation will reduce annual revenues by “less than $300 million,” the statement said.
Analysts have expected something like this since Corbat was introduced as CEO by Chairman Michael O’Neill. O’Neill is known in the banking industry for shrinking companies to eliminate businesses that are not earning satisfactory returns.