12:55 PM EST, December 5, 2012
Citigroup announced this morning it would lay off 11,000 employees — about 4 percent of its workforce — to save money.
A Citi spokesman said the layoffs are expected to have little impact in Maryland, where the company employs 3,600 workers. Less than 1 percent of those Maryland employees will be affected, the spokesman said. Citi plans to close one branch here while other affected Marylanders work in the operations and technology group, the spokesman said. The location of the branch wasn’t disclosed.
Update: Cliff Rossi, University of Maryland business finance professor and former Citigroup senior executive, offered up his analysis on the layoffs:
"These latest cost-cutting measures get Citi focused back on efforts to improve their operating efficiency relative to their peers. Citi's dollars of revenue generated per employee lag their competitors and so this announcement is not surprising," he said in a statement.
Rossi added that Citi's problems aren't behind it yet.
"Ultimately, for Citi to regain its prominence among the largest banking institutions, it will need to go well beyond cost-cutting measures and tackle the harder strategic questions of operating in a challenging environment."
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