Citigroup Inc will eliminate 11,000 jobs worldwide, about four per cent of its total staff, in a move to save as much as $1.1 billion a year in expenses, the company said yesterday.

The move will initially result in pre-tax charges of $1 billion to fourth-quarter earnings, the company said in a statement.

The move is the first major action to restructure the company since directors named Michael Corbat chief executive officer in October after becoming impatient with former chief executive officer Vikram Pandit.

“We have identified areas and products where our scale does not provide for meaningful returns,” Corbat said in a statement from the company. “We will further increase our operating efficiency by reducing excess capacity and expenses,” he added.

Besides the job cuts, the reorganisation will reduce annual revenues by “less than $300 million,” the statement said. Analysts have expected an action of this sort since Corbat was introduced as chief executive officer by chairman Michael O’Neill.

O’Neill is known in the banking industry for ruthlessly shrinking companies to eliminate businesses which are not earning satisfactory returns.