print header

# 1 Commercial Real Estate Information Company

  • Find Properties 
  • Market Properties 
  • Analyze Properties 
Commercial Real Estate News

Facility Closures & Layoffs: Citigroup Cutting 11,000 Jobs

Also More Downsizings in CT, FL, IN, MD, MN, OH and SC
December 5, 2012
Citigroup plans to cut more than 11,000 jobs worldwide in the fourth quarter as it continues to reduce expenses and improve efficiency across the company.

Share this story with your followers

“These actions are logical next steps in Citi's transformation,” said Michael Corbat, Citi’s CEO. “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.”

Due to this repositioning, Citi expects to record pre-tax charges of approximately $1 billion in the fourth quarter of 2012 and approximately $100 million of related charges in the first half of 2013. Citi currently expects that the repositioning will generate $900 million of expense savings benefitting 2013 results and that the annual expense savings will exceed $1.1 billion annually beginning in 2014.

Citi expects the repositioning activity to affect the following businesses and functions.

Approximately 25% of the repositioning charges are expected in Securities and Banking with another 10% in Transaction Services. The repositioning actions are expected to result in a reduction of approximately 1,900 positions, of which more than half are in the Operations & Technology functions that support the business.

Approximately 35% of the charges are expected to be incurred in Global Consumer Banking, resulting in a reduction of approximately 6,200 positions, of which approximately 40% are in the Operations & Technology functions that support the business. As a result of the repositioning actions, Citi expects to either sell or significantly scale back consumer operations in Pakistan, Paraguay, Romania, Turkey and Uruguay.

The bank said it will focus on the 150 cities that it says have the highest growth potential in consumer banking. The markets affected by the reductions include the United States (44) as well as Brazil (14 branches), Hong Kong (7), Hungary (4), Korea (15).

Citi Holdings is expected to eliminate approximately 350 positions and incur approximately 5% of the repositioning charges. Most of the repositioning charges are related to branch rationalization in Greece and Spain.

About 25% of the announced repositioning charges are expected to be incurred in corporate/other functions.

Closures & Downsizings



CompanyAddressCityStateClosure or LayoffLayoffsImpact Date


ProPark Inc.260 Crown St.New HavenCTUnknown1861/20/2013


Laurel Hill Healthcare108 E.t Lake St.WinstedCTClosure1171/14/2013


Pierce Manufacturing Inc.1512 38th Ave. EastBradentonFLUnknown2361/10/2013


Bechtel Power Corp., FP&L Turkey Point EPU Project9760 SW 344th St.Florida CityFLUnknown2771/6/2013


ITW Consumer2107 W. Blue Heron Blvd.Riviera BeachFLUnknown732/28/2013


Vertafore7835 Woodland DriveIndianapolisINLayoff231/31/2013


facadeTek4485 S. Perry Worth RoadWhitestownINLayoff721/2/2013


Mercier's7442 Shipley Ave.HarmansMDLayoff7512/31/2012


Kraft Foods2525 S. Bridge St.New UlmMNUnknown1131/8/2013


H.C. Starck Inc.1250 E. 222 St.EuclidOHLayoff671/21/2012


The Andersons Inc.3725 WillistonNorthwoodOHClosure1211/1/2012


Hill-ROM4349 Corporate RoadNorth CharlestonSCLayoff2912/31/2012

Keep up weekly on national news, trends and property leads with the Watch List Newsletter, a weekly pdf that includes other news and leads not found on the CoStar Group web news pages. Sign up for the Watch List E-Mail Alert. A new issue is published late each Wednesday.
GET IN TOUCH        Contact CoStar News Team:

 Find us on 

Welcome To CoStar's
Award-Winning News

Winner of three Journalism Awards from the National Association of Real Estate Editors (NAREE)

Award-Winning News