“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 statement noted.
In Romania, Citi will focus on its corporate banking business, the bank’s local subsidiary said in a release later today.
“While we have a strong and fast growing portfolio in the country, in the current economic environment we will not achieve the scale and profitability the company needs, fast enough,” the Romanian lender said.
“It’s more feasible to reinvest our efforts in our corporate and commercial banking where the bank can grow in Romania.”
Citi estimates total costs with its global repositioning program will reach some $1.1 billion, which will be written off starting with 2013. Annual expense savings are slated to exceed $1.1 billion beginning in 2014.
Approximately 11,000 employees are estimated to lose their jobs following the repositioning.