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Grinch comes early with Citigroup layoffs

CitiLogo_optBY GINA G. SCALA
NEWJERSEYNEWSROOM.COM

For some Citigroup employees in the Garden State, the Grinch has arrived early this Christmas season.

The company said Wednesday it would cut 11,000 jobs and close six New Jersey branches by Dec. 14, Catherine Pulley, Citigroup spokeswoman, said.

It’s unclear how many employees at the branches in Bayonne, Brick, East Hanover, Nutley, Roseland and Springfield will be affected, the Star Ledger of Newark reported. Most of the employees can apply for other jobs within the company.

There are more than 4,000 Citigroup employees in the state, according to the Star Ledger of Newark.

The bulk of the 11,000 job cuts will come from the company’s consumer banking unit; about 6,200 or 4 percent of the company’s employee base. The consumer banking unit is responsible for the everyday banking functions at branches.

Pulley said customers have been notified of the changes, which include all accounts at branches facing closure being transferred to the nearest location.

In addition to the consumer banking cuts, Citigroup will also slash nearly 2,000 jobs from its institutional clients group, including investment banking, according to aCitigroup statement announcing the changes.  And Citigroup, the third-largest bank in the country by assets, expects to reduce technology and operations jobs by moving toward more automation and moving jobs to “lower-cost locations.

“It is a shift in priorities and a shift in magnitude,” Marty Mosby, a Guggenheim Securities LLC analyst said. “The board was more comfortable in maximizing profitability through efficiency initiatives in lieu of trying to aggressively seek incremental growth opportunities.”

For the first time since January, Citigroup shares jumped 6.3 percent to $36.46, Bloomberg News reported.

 

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