Citigroup to globally cut jobs, “significantly” scale back Pakistan operations
WASHINGTON: Citigroup announced Wednesday that it would “significantly” scale back operations in several countries including Pakistan, as it cuts more than 11,000 jobs in a move to boost efficiency.
The leading banking group said that most of the job cuts will be made in its global consumer banking division.
“Due to this repositioning, Citi expects to record pre-tax charges of approximately $1 billion in the fourth quarter of 2012 and approximately $100 million of related charges in the first half of 2013,” the company said.
Around 6,200 of the job losses will be in the consumer banking division as Citi pushes a strategy of focusing on the 150 cities around the world “that have the highest growth potential in consumer banking.”
As a result, Citi said it will “significantly” scale back operations in Pakistan, Turkey, Paraguay, Uruguay and Romania.
Earlier last month, Citibank N.A. (Pakistan Operations) announced an agreement with Habib Bank Limited to sell its Credit Card and Consumer Lending portfolio in Pakistan.
Other markets affected by the cuts include the United States, Brazil, Hong Kong, South Korea, and Hungary.
“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,” said Michael Corbat, the huge bank’s new chief executive.
“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.”
The actions came seven weeks after Corbat was named chief executive following the shock sacking of Vikram Pandit and Pandit’s top aide in an unexpected board move against them.