Citigroup Inc. (C: Quote) said it is cutting more than 11,000 positions, as a part of repositioning actions, resulting in an estimated pre-tax charges of nearly $1 billion in the fourth quarter of 2012 and some $100 million of related charges in the first half of 2013.
Citi said it now expects the repositioning to generate $900 million of expense savings benefitting 2013 results and that the annual expense savings would exceed $1.1 billion annually beginning in 2014. Furthermore, the company anticipates that the actions would have a negative impact on annual revenues of less than $300 million.
The repositioning, which includes Institutional Clients Group, Global Consumer Banking, Citi Holdings, and Corporate/Other, is expected to result in the reduction of about 2,300 positions that support corporate services, real estate, and Citi Holdings, and roughly 300 Global Functions positions.
by RTT Staff Writer
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