Citigroup is set to cut 11,000 jobs globally as it continues its restructuring drive in the aftermath of the global banking crisis.
The major US financier announced yesterday (5 December) that the majority of these redundancies - which will lead to its headcount being reduced in size by four per cent - will be implemented in its consumer banking division.
It is thought this decision will cost the company around $1 billion in pre-tax charges and the lender said this fee will be recorded in its results for the fourth quarter of the year.
However, the effects of this move - which will include scaling back operations in countries such as the US, Brazil, Turkey and South Korea - are expected to leave the bank some $900 million better off in 2013 and a further $1.1 billion one year later.
Michael Corbat, chief executive officer at Citigroup, said this action is the "logical next step" in the banks' transformation.
By Asim Shah