Citigroup to Cut 11,000 Jobs, Take $1 Billion Charge
Citigroup Inc. (C) Chief Executive Officer Michael Corbat, who took over the bank in October, is cutting more than 11,000 jobs, scaling back operations in some emerging markets and taking a $1 billion charge this quarter in an effort to drive down costs.
The institutional clients group, which includes trading, investment banking and transaction services, will cut about 1,900 jobs, New York-based Citigroup said today in a statement. That move seeks to “improve overall productivity in our markets business, especially in areas experiencing continued low profitability, such as cash equities,” the bank said. The stock jumped more than 4 percent in New York trading.
Corbat, 52, is adding to a January cost-cutting announcement by predecessor Vikram Pandit, who had previously sought to boost some of the businesses targeted today. The new CEO is responding to an industrywide slump in trading and investment banking, stiffer capital requirements and Europe’s debt crisis. Goldman Sachs Group Inc., Morgan Stanley and UBS AG are among rivals focused on reducing costs.
Citigroup Inc. (C) Chief Executive Officer Michael Corbat, who took over the bank in October, is cutting more than 11,000 jobs, scaling back operations in some emerging markets and taking a $1 billion charge this quarter in an effort to drive down costs.
The institutional clients group, which includes trading, investment banking and transaction services, will cut about 1,900 jobs, New York-based Citigroup said today in a statement. That move seeks to “improve overall productivity in our markets business, especially in areas experiencing continued low profitability, such as cash equities,” the bank said. The stock jumped more than 4 percent in New York trading.
Corbat, 52, is adding to a January cost-cutting announcement by predecessor Vikram Pandit, who had previously sought to boost some of the businesses targeted today. The new CEO is responding to an industrywide slump in trading and investment banking, stiffer capital requirements and Europe’s debt crisis. Goldman Sachs Group Inc., Morgan Stanley and UBS AG are among rivals focused on reducing costs.