Georgia to see little impact from Citigroup's job cuts

DULUTH - The 17,000 job cuts Citigroup Inc. announced Wednesday should have little effect on the company's workers in Georgia, said Citigroup spokesperson Liz Fogarty.

That's good news for Duluth-based Primerica, a Citigroup subsidiary.

Primerica is Gwinnett County's fifth-largest employer with 1,400 workers, according to the Gwinnett Chamber of Commerce, and accounts for more than 40 percent of Citigroup's 3,346 jobs in Georgia.

Fogarty said 4 percent, or roughly 134, of Citigroup's workers in Georgia would be fired over the next week or two. She could not go into specifics for individual cities or subsidiaries because workers were still being notified.

"This will have a very minimal impact in Georgia," Fogarty said.

The cuts in Georgia seem to be on par with the amount of jobs being cut company wide, with a little more than

5 percent of Citigroup's 327,000 workers being let go. Citigroup is the nation's largest financial institution.

The company's job cuts come as part of an effort to create a more streamlined organization, reduce expense growth and drive future expansion, a press release said Wednesday.

Citigroup expects to save approximately $10.4 billion over the next three years because of the cuts and changes.

"We did not simply give the entire organization an arbitrary number to cut," said Robert Druskin, Citigroup's chief operating officer, in a statement. "Instead, we looked objectively at each of our businesses and functions based on the opportunities we saw, benchmarking them against their peers."

The job cuts are a result of changes Citigroup deemed necessary after a review of its structure. The company plans to:

-Eliminate layers of management.

- Consolidate certain back-office, middle-office and corporate functions. This will result in more than 9,500 jobs being moved to lower-cost locations with about two-thirds lost through attrition.

- Increase the use of shared services by creating utilities in areas like legal, human resources, risk management and financial operations.

- Expand centralized procurement.

- Continue to rationalize operational spending on technology.