Citigroup Chairman and Chief Executive Charles Prince said Monday he would release details of cost-cutting steps later this week, including the consolidation of some operations and moving others to lower-cost locations.
In a memo to employees made available to The Associated Press, Prince said the cuts were aimed at "eliminating expenses while advancing our core strategic growth objectives." The process, he said, "has been and will be challenging."
He sketched broad outlines of the overhaul, but said specifics would be released at a Web conference Wednesday. Prince indicated the cutbacks would be throughout Citigroup's operations worldwide. Citigroup, the nation's largest financial institution, has more than 327,000 workers in more than 100 countries.
Media reports about the financial review, which has been under way since the fourth quarter, have said 26,000 workers could lose their jobs or be reassigned.
Cost savings could approach $2 billion a year, they said.
Shares of Citigroup declined.
In the memo, Prince said: "We will consolidate certain back-office, middle-office and corporate functions at the business, regional and headquarters levels to eliminate duplication of effort and focus, instead, on building truly efficient, world-class business operations with scale."
Prince also said some operations would be moved "to lower-cost locations." And, he said, there would be continuing efforts aimed at "rationalizing our technology platforms to operate more efficiently and effectively."
Prince has been under pressure to get a handle on the bank's burgeoning expenses, which grew 15% last year, twice the pace of revenue growth.