Citibank (Citi) have announced they are to cut 11,000 jobs around the world in an attempt to save $1.1bn in costs.
Citi will shutter 44 outlets in the US, reducing its US branch network to around 1,000 units. In Brazil, Hong Kong, Hungary, andKorea, Citi will close a further 40 branches.
There will be a significant rationalisation of branches in depressed eurozone markets such as Greece and Spain.
Michael Corbat, Citi’s CEO, said: "These actions are logical next steps in Citi’s transformation. While we are committed to – and ourstrategy continues to leverage – our unparalleled global network and footprint, we have identified areas and products where our scaledoes not provide for meaningful returns.
And we will further increase our operating efficiency by reducing excess capacity and expenses, whether they centre on technologyreal estate or simplifying our operations."
Corbat added: "We have shed hundreds of billions in assets and businesses that are not core to our strategy. We will continue toseek ways to optimize the execution of our strategy to better serve our clients and deliver results for all of our stakeholders."
The bank plans to scale down its consumer banking division removing 6,200 jobs, 40% of which are in operations and technology functions.
Citi expects to sell or reduce consumer operations in Pakistan, Paraguay, Romania, Turkey and Uruguay and focus on the 150 cities that have the highest growth potential in the area.
Citi expects to record pre-tax charges of approximately $1bn in the fourth quarter of 2012 and approximately $100m of related charges in the first half of 2013.
Citi currently expects that the repositioning will generate $900m of expense savings benefitting 2013 results and that the annualexpense savings will exceed $1.1bn annually beginning in 2014.
Citi also expects the cost saving measures to have a negative impact on annual revenues of less than $300m.