As Citigroup CEO Michael Corbat continues to restructure several of the bank’s businesses, nearly 2,000 employees will face layoffs starting next month.
Late last week people familiar with the plans told Bloomberg the terminated positions will mostly be in middle or back-office roles throughout the company’s global footprint.
While those briefed on the layoffs did not disclose to Bloomberg which of the bank’s businesses would be targeted specifically, others close to the matter said employees in the bank’s institutional business would be among those dismissed. This includes Citigroup’s trading and investment banking operations.
Earlier this year the bank announced its efforts to reorganize its retail banking business by combining its retail banking and mortgage operations.
Dow Jones reported that the move represents an effort by the company to “shore up” its mortgage operations. The changes were reportedly part of a memo penned by Stephen Bird, who was recently tapped to lead the consumer bank.
In September, The Boston Globe reported that Citigroup officially decided to close its 17 retail banking branches in the Greater Boston Area by Jan. 2016. Following several changes to the company’s executive board, the move to exit the Boston market comes as a way for Citigroup to remove an unprofitable section of its retail banking business as it refocuses toward other areas. Despite opening its first retail branch in the Boston area more than eight years ago, Citigroup never held more than 1 percent of the market share in Massachusetts.
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“We are transforming our operating model by reallocating resources to invest significantly in enhancing our digital channels and building a new branch model in our major, target markets where we have sufficient scale to best serve our customers,” Andrew Brent, a spokesman for Citigroup, said in a statement. “In Boston, Citi’s retail banking presence does not provide such scale, so we are reallocating resources accordingly.”
