Citigroup Inc. (NYSE: C) may be announcing a restructuring effort today, but the move may not seem too extreme compared to past restructurings. What feels different here is that the bank is pointing where the cuts will be and quantifying those cuts up front. The aim is to reduce expenses and improve efficiency while maintaining services.
Michael Corbat, Citi’s new chief executive officer, is making his first mark on chopping away at Citi’s expense structure. These actions will result in a reduction of more than 11,000 positions.
Citi expects a pretax charge of about $1 billion in the fourth quarter of 2012 and approximately $100 million of related charges in the first half of 2013. The company projects $900 million of expense savings for 2013 results as a result, and longer term it expects savings of more than $1.1 billion annually after 2013. As far as what this…
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