Citigroup to cut 11,000 jobs, a familiar story

Published on NewsOK Modified: December 5, 2012 at 4:44 pm •  Published: December 5, 2012
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While the job cuts are among the first major moves by Corbat, they are in line with Pandit's blueprint. Citi's roster of 262,000 employees is down from 276,000 at this time in 2009.

Glenn Schorr, an analyst for the financial services company Nomura, said that the cuts announced Wednesday might be considered too light by analysts and investors. But he said they were "a step in the right direction" and noted "substantial" job and cost cuts the company has made over the past seven quarters.

Bank of America and Morgan Stanley have also shed jobs over that period.

In a statement Wednesday, Corbat said his bank remains committed to "our unparalleled global network and footprint." However, he added: "We have identified areas and products where our scale does not provide for meaningful returns."

He promised that the bank would continue to trim, whether in "technology, real estate or simplifying our operations."

The paring hasn't always gone as well as Citi has hoped. This fall, for example, when Citi negotiated the sale of its stake in the retail brokerage Morgan Stanley Smith Barney, it got far less than it wanted from the buyer, Morgan Stanley.

Corbat said Citi "has come a long way over the past several years."

Citi said it expects the cuts to save $900 million next year, and more in the following years. They will be a drag, though, in the short term: Citi said it expects to record pre-tax charges of approximately $1 billion in the fourth quarter.