Citigroup Inc. said Wednesday that, as part of a cost-cutting plan, it will lay off thousands of middle-management and back-office employees and shift 9,500 jobs to new locations.
The nation’s largest financial institution announced that it will eliminate about 17,000 jobs, shift 9,500 positions to “lower-cost locations” and consolidate some corporate operations.
The steps – which are expected to shave more than $2 billion from the bank’s operating costs this year alone – also should result in faster service for consumers and businesses, Citi’s chief operating officer, Robert Druskin, said Wednesday.
Worldwide, the cuts will save Citigroup $2.1 billion this year, $3.7 billion in 2008 and $4.6 billion in 2009. The company will take an after-tax charge of $871 million against its first-quarter 2007 results, scheduled to be disclosed Monday, and pretax charges of about $200 million spread out over the remaining three quarters of the year, it said.
Before the company released details of its cost cuts, some analysts had speculated that they could derail expansion plans in Boston. But in an internal memo circulated Monday, Citigroup chief executive Charles Prince said the cuts would not hamper the company’s most important growth plans.
The Associated Press contributed to this report.
