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Citigroup to cut 11,000 jobs, take S$1.2b in charges

Published on Dec 5, 2012 10:29 PM
A man at a Citibank branch at the United States bank Citigroup world headquarters on Park Avenue, in New York, on  Nov 17, 2008. Citigroup announced on Dec 5, 2012 that it would cut 11,000 jobs in a move boost efficiency, with most of the cuts in its global consumer banking division. "Due to this repositioning, Citi expects to record pre-tax charges of approximately S$1.2 billion in the fourth quarter of 2012 and approximately US$100 million (S$121 million) of related charges in the first half of 2013," the company said. -- PHOTO: AFP

(REUTERS) - Citigroup will eliminate 11,000 jobs worldwide, about 4 per cent of its total staff, in a move to save as much as US$1.1 billion (S$1.34 billion) a year in expenses, the company said on Wednesday.

The move will initially result in pre-tax charges of $1 billion (S$1.2 billion) to fourth-quarter earnings, the company said in a statement.

The move is the first major action to restructure the company since directors named Michael Corbat chief executive officer (CEO) in October after becoming impatient with former CEO Vikram Pandit.

"We have identified areas and products where our scale does not provide for meaningful returns," Mr Corbat said in a statement from the company.

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