Citibank remains committed to its business in Indonesia despite sweeping reform measures.
Citigroup’s newly appointed CEO, Michael L. Corbat, unveiled programs to create more efficiency within the company, including the plan to axe 11,000 employees worldwide.
The plan is expected to save at least US$900 million for Citigroup’s operations next year, and around $1.1 million a year starting 2014.
“Indonesia is one of Citi’s 16 emerging priority countries and our commitment to the country is long-term,” said Citibank Indonesia’s corporate affairs head Agung Laksamana.
But the bank acknowledged that it is currently “evaluating its strategic priorities in Indonesia”, including strategies that could boost its optimization and effectiveness.
Emerging economies are not exempt from the axe, as Citigroup said it planned to sell or significantly scale back consumer operations in Pakistan, Paraguay, Romania, Turkey and Uruguay. The bank also plans to shed 84
branches in Brazil (14), Hong Kong (7), Hungary (7), Korea (15) and the US (44), with the company expected to maintain 4,000 retail branches worldwide after the reductions, according to Reuters newswire.
Agung, however, declined to comment on whether the lay-off measure would also affect Citigroup’s operations in Indonesia.
Do you know more about this story? Contact us anonymously through this link.