According to Citigroup spokesman Mark Costiglio, the banking giant will lay off employees at branches in Nutley, Brick, East Hanover, Roseland, Springfield and Bayonne, which will close within two weeks and reduce the company's New Jersey footprint to 25 locations. Costiglio said Citigroup also will eliminate operations and technology positions that support those branches, cutting its total state work force by 7 percent, or 294 jobs.
The job cuts and branch closings fall under a nationwide consolidation plan announced Wednesday by Citigroup CEO Michael Corbat to lay off more than 11,000 employees, roughly 4 percent of its work force. Corbat expects the move to save the company approximately $900 million in 2013, and more than $1.1 billion a year beginning in 2014, though he anticipates the action will first incur about $1 billion in pre-tax costs in the fourth quarter of 2012.
Citi will slash 6,200 positions at its consumer banking unit; eliminate 2,300 operations and technology jobs that support its corporate services, real estate and holdings businesses; and lay off 1,900 workers at its institutional clients group. To further reduce its expenses, Citi said it will increase its use of automated banking processes and move "certain positions to lower-cost locations," though it did not disclose those sites.
In a statement, Corbat said Citi "has come a long way over the past several years" and the cuts are "logical next steps in Citi's transformation."