Citigroup to Cut 11,000 Jobs

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SAN FRANCISCO, CA - APRIL 18: A pedestrian walks by a CitiBank branch office on April 18, 2011 in San Francisco, California. Citigroup's first-quarter profit dropped 32 percent with quarterly earnings of $3.0 billion, or 10 cents per share, compared to $4.4 billion, or 15 cents per share one year ago.

We know 11,000 people who aren’t too excited about these “transformations.” Citigroup announced that it will absorb a tax charge of $1 billion for the quarter and eliminate about 11,000 jobs. The CEO of the third-biggest U.S. bank said that the move was a “logical” step in the bank’s transformation. Under the reduction, 1,900 jobs will be eliminated in the institutional clients division, 6,200 will be removed from the consumer banking business, and 2,600 in the operations and technology group. The announcement comes amid internal turmoil: last month, Citigroup's chairman pushed out the chief executive, Vikram Pandit, and handpicked Pandit's successor. That move came one day after the bank reported higher-than-expected third-quarter earnings.