Citigroup, the third-largest bank in the U.S., announced this week that it would cut 11,000 jobs, nearly 4 percent of its workforce.
According to an article in the Wall Street Journal, this story is far too familiar to the banking industry, which is still recovering from the 2008 financial crisis.
Most of the cuts (about 6,200) will come from Citi’s consumer banking unit, which handles functions such as branches and checking accounts. The company will also sell or scale back its consumer operations in Pakistan, Paraguay, Romania, Turkey, and Uruguay, so that it can focus on 150 cities around the world “that have the highest growth potential in consumer banking.” Another 1,900 job cuts will take place in the institutional clients group, which includes investment banking.
Citi said the cuts should save $900 million next year.