Citigroup on Wednesday announced plans to cut 11,000 jobs and close branches in a restructuring effort that will result in a fourth-quarter charge of about $1.1 billion.
People walk past Citigroup headquarters in New York. REUTERS/Brendan McDermidCiti said the cuts come as it attempts to further reduce expenses and improve efficiency.
The bulk of the layoffs, some 6,200 positions, are expected to come from global consumer banking.
The company said it also expects to take $100 million of related charges in the first half of 2013.
Citigroup said it expects about $900 million in cost savings next year and annual expense savings of more than $1.1 billion beginning in 2014.
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"These actions are logical next steps in Citi's transformation.While we are committed to - and our strategy continues to leverage - our unparalleled global network and footprint, we have identified areas and products where our scale does not provide for meaningful returns," Michael Corbat, Citi's chief executive officer, said in a statement. "And we will further increase our operating efficiency by reducing excess capacity and expenses, whether they center on technology, real estate or simplifying our operations."
Shares of Citi were 3 percent higher after the announcement in pre-market trading prior to the opening bell.
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