The megabank announced the slashing of 4 percent of its workforce as a report telling of Hurricane Sandy’s negative impact on economic growth was published.
Citigroup’s new chief executive, Michael Corbat, who replaced Vikram Pandit in October, expects the cuts to shave $1.1 billion a year in costs starting in 2014. Most of the jobs will come from the company’s consumer banking office, which handles the everyday work of neighborhood branches. The bank did not say how many jobs will be cut in the United States.
The announcement comes one year after Citigroup said it would let 4,500 workers go.
Experts suggest 86,000 jobs—mostly in leisure, travel and hospitality—were lost due to Hurricane Sandy in November, a month in which economists had expected a growth of 125,000 jobs and saw only 118,000.
—Posted by Alexander Reed Kelly.
Like many banks, the group has been announcing job cuts regularly over the past few years, although arguably it has made deeper cuts because of its enormous personnel. Citigroup’s peak headcount, in 2007, was 375,000 employees. Citigroup cut that down to 267,000 employees in September 2011; now, over a year later, that number is about 260,000.
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.”
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