CitiFinancial to Re-Organize, Cut Up to 600 Jobs

CitiFinancialCitigroup said its CitiFinancial unit will close 330 branches in the U.S. and expects the re-organization of the consumer finance arm to result in the loss of between 500 and 600 jobs.
The move is intended to cut costs and to make the new entity more attractive to potential buyers.
“The strategy is expected to enable CitiFinancial to expand lending in line with consumer demand and preserve its ability to help future borrowers,” Citigroup said in a statement.
As part of the plan, CitiFinancial will be renamed after separating its U.S. business into two segments: Full Services Branches and Servicing.
The Full Service Branches will focus on loan originations and servicing of personal, refinance and home equity loans.
Servicing locations will provide specialized assistance, such as loan modifications or restructuring, and will have larger offices with extended hours in “communities they currently serve.”
“Through CitiFinancial Servicing, we’ll be better equipped to help customers stay current on their loans and achieve their financial goals in today’s challenging economic environment,” said Mary McDowell, chief executive officer of CitiFinancial.
The reorganization will be effective July 1 and CitiFinancial will be renamed, but no new name has been announced.
CitiFinancial said it will retain a presence in the 48 states where it now has a branch.

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