Citigroup to buy up to $1.2 billion of notes

Citigroup to buy up to $1.2B of notes, more than previously announced

Associated Press

NEW YORK (AP) -- Citigroup plans to buy more outstanding notes in its tender offers than previously announced. The bank said that it will now purchase up to $1.2 billion of the notes.

The company, which announced last week that it will cut 11,000 jobs, previously said it would buy $910 million of the notes.

Citigroup said Monday that it has lowered its long-term debt by about $13.9 billion for the year to date, excluding the offers.

Citigroup Inc.'s planned job cuts amount to about 4 percent of its workforce and is considered a bold early move by new CEO Michael Corbat. He became CEO in October after Vikram Pandit unexpectedly stepped down. Pandit had reportedly clashed with the board over the company's strategy and its relationship with the government.

The bulk of the cuts, about 6,200 jobs, will come from Citi's consumer banking unit, which handles everyday functions like branches and checking accounts.

Citigroup is the third-largest bank in the country by assets. It anticipates the planned job cuts will save $900 million next year, and more in the following years.

The company's stock dropped 34 cents to $37.30 in morning trading.

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