Citigroup Announced That It Will Cut 11,000 jobs

Banking giant Citigroup announced Wednesday that it would cut about 11,000 jobs, or about 4 percent of its global work force, and shutter some branches in an attempt to save as much as $1.1 billion a year in costs.

The move will initially result in pre-tax charges of $1 billion to fourth  quarter earnings.

It is the first major  action to restructure the company since directors named Michael Corbat chief  executive officer in October after becoming impatient with former CEO Vikram  Pandit.

“We have identified areas and products where our scale does not provide for  meaningful returns,” Corbat said in a statement from the company. “We will  further increase our operating efficiency by reducing excess capacity and  expenses,” he added.

Besides the job cuts, the reorganization will  reduce annual revenues by “less than $300 million,” the statement said.

Analysts have expected an action of this sort since Corbat was  introduced as CEO by Chairman Michael O’Neill. O’Neill is known in the banking  industry for shrinking companies to eliminate businesses that are not earning  satisfactory returns.