Posted on 06/01/2010 8:07:44 PM PDT by SeekAndFind
CitiFinancial said Tuesday it will close 330 branches in the U.S., including three in Missouri and eight in Illinois.
Baltimore-based CitiFinancial, the consumer finance arm of Citigroup (NYSE: C), was not immediately disclosing which branches it will shutter, spokeswoman Shannon Bell said.
As part of a reorganization plan, CitiFinancial is separating its U.S. business full-service branch and servicing segments, and will convert 182 of its full-service U.S. branches into servicing centers. CitiFinancial also said it would rename its business after the reorganization and by the end of the year.
Full-service branches will continue to focus on loan originations and servicing personal, refinance and home equity loans. CitiFinancial servicing locations will focus on loan modifications or restructurings, with extended operating hours and expanded management support, the company said.
The company expects the closures to result in 500 to 600 job cuts. CitiFinancial said it will keep a presence in the 48 states where it’s currently located. In Canada, CitiFinancial will close 46 branches and eliminate about 120 positions.
CitiFinancial has 28 full-service branches in Missouri and will convert three of those to servicing centers and close three, Bell said.
In Illinois, the company has 49 full-service branches and will convert six of those to servicing centers and close eight.
“This reorganization will enable CitiFinancial to continue lending to U.S. consumers while better serving its customers in need,” CitiFinancial CEO Mary McDowell said in a statement.
The reorganization is expected to be complete this summer.
mark for tomorrow
The job cut estimate is low in my opinion. Thinking 3 to 4 per office average, make over 1,000 heads to roll.
Citi is downsizing into businesses that have proven to be most profitable. Watch the mortgage units to downsize next.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.