With new CEO Michael Corbat at the reins , Citigroup (NYSE: C ) announced today that it will cut more than 11,000 jobs and take a fourth-quarter pre-tax charge of approximately $1 billion.
In a statement, Corbat said, "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."
The job cuts include 1,900 in the Institutional Clients Group, 6,200 in the Global Consumer Banking unit, 350 in Citi Holdings, and 2,600 under a corporate/other function. Citi will be selling or significantly scaling back consumer operations in Pakistan, Paraguay, Romania, Turkey and Uruguay. Citigroup will close 44 branches in the U.S., 15 in South Korea, and 14 in Brazil. There will also be "branch rationalization" in Greece and Spain.
Eleven thousand positions is about 4% of Citi's total number of full-time employees.
The company will also record $100 million in charges for the first half of 2013, but expects to generate around $900 million of savings in 2013 and $1.1 billion annually thereafter. The "repositioning actions" involve an estimated $300 million negative annual impact on revenue.
Last quarter, the financial company pulled in $14.1 billion in sales and $468 million in net profit. For FY 2011, Citigroup made $65.8 billion and pocketed $11 billion in net profit.