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Citi Cutting Over 11,000 Jobs

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Plans to reduce Citigroup Inc.‘s workforce by more than 11,000 impact some units that handle mortgages. Still, the financial services giant will remain among the biggest banking employers.

Citi disclosed Wednesday “repositioning actions” that include the layoffs.

The moves are expected to result in fourth-quarter charges of $1 billion but save the company $0.9 billion in 2013 and $1.1 billion each year after that.

“These actions will result in increased business efficiency, streamlined operations and an optimized consumer footprint across geographies,” the statement said.

More than 11,000 positions are being eliminated as part of the moves.

Around 1,900 of the impacted jobs are in the institutional clients group, while 6,200 are in global consumer banking, and 300 are global functions positions.

Citi Holdings, the unit created to handle distressed assets including toxic mortgages, will eliminate around 350 positions.

Jobs lost from the consolidation of certain locations in Citi’s real estate portfolio will be among the 2,300 operations and technology positions being reduced.

The plans represent one of the first major moves by Citigroup Chief Executive Officer Michael Corbat since he took over the job in October after Vikram Pandit was forced out.

The staffing cuts at Citi, which reported headcount of 262,000 as of Sept. 30, will still leave the New York-based company near the level of staffing maintained by rivals.

At Bank of America Corp., staffing finished the third quarter at 272,594, while Wells Fargo & Co. reported 267,000 employees, and JPMorgan Chase & Co. said it had 259,547 full-time employees as of the end of September.

“These actions are logical next steps in Citi’s transformation,” Corbat said in Wednesday’s announcement. “While we are committed to — and our strategy continues to leverage — our unparalleled global network and footprint, we have identified areas and products where our scale does not provide for meaningful returns. And we will further increase our operating efficiency by reducing excess capacity and expenses, whether they center on technology, real estate or simplifying our operations.”

Other recent Citi layoffs include:

Earlier this year, after several hundred North Texas jobs were added to help Citi comply with a 2011 consent order from the Office of the Comptroller of the Currency and the $25 billion servicer settlement earlier this year, CitiMortgage Inc. launched a recruiting campaign for another 750 employees.

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