Citigroup is to lose more than 5,000 IT and operations jobs as part of the banking giant’s axing of 11,000 jobs globally.
Some 40% of the jobs being cut in the firm’s Global
Losses in its Institutional Clients Group operation will see 1,900 positions go, of which more than half are in the operations and technology functions that support the business.
By reducing its global workforce by 4%, Citi expects to record pre-tax charges of $1bn in the fourth quarter of 2012 and approximately $100m of related charges in the first half of 2013.
Michael Corbat, CEO at Citigroup, said the bank had identified areas and products where its scale does not provide for meaningful returns.
“We will further increase our operating efficiency by reducing excess capacity and expenses, whether they centre on technology, real estate or simplifying our operations," he added.
Citi's operations and technology function is expected to achieve greater efficiency through increasing standardisation and the use of automated processes, streamlining the organisational structure, and consolidating functions and moving certain positions to lower-cost locations, said the bank.