Citigroup to close six Hong Kong branches and lay off staff
Staff to be culled as part of 11,000 job losses globally in bid to save US$1b
Citigroup is to close six branches and cut jobs in Hong Kong over the next few months as part of efforts to trim its workforce worldwide.
The closures come on the heels of the Japanese investment bank Nomura quietly laying off staff in Hong Kong.
The new cuts are on top of several rounds of lay-offs at international banks in Hong Kong this year that have resulted in hundreds of job losses.
Behind the staff cuts are weak financial markets, including a downturn in new listings on the Hong Kong stock exchange, and low turnover.
Citigroup announced on Wednesday that it would slash 11,000 jobs globally, or 4 per cent of its workforce. The bank had been aggressively expanding its branch network in Hong Kong and now has 46 branches, up from just 25 three years ago. A Citigroup spokesman said the staff impact of closing six branches would be minimal.
Michael Corbat, chief executive at Citigroup, said the New York-based bank would close 84 branches globally, 44 in the US, in a bid to save more than US$1 billion a year from 2014. Corbat succeeded Vikram Pandit as chief executive in October when Pandit abruptly left the helm.