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Citicorp expects few local changes

April 13, 2007|by ANDREW SCHOTZ

WASHINGTON COUNTY - One day after Citi announced it would cut and shift about 26,500 jobs, a company spokesman estimated the effect in Maryland to be "very minimal."

About 4 percent, or 240, of Citi's 5,900 employees in Maryland would be part of the cuts and shifts, said Robert Julavits, a company spokesman in New York.

Nothing has been revealed yet about what, if anything, will change at Citicorp Credit Services, a Citi subsidiary in Washington County with about 2,400 employees.

News about specific Citi properties probably won't be released until next week; employees are being told this week what will happen to their jobs, Julavits said.

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He said Citi, which had been known as Citigroup, also has a consumer finance operation in Baltimore.

Citi's plan is to eliminate about 17,000 jobs, move more than 9,500 jobs to "lower-cost locations" and consolidate some operations.

Citicorp Credit Services has been in Washington County for about 20 years.

It is Washington County's largest private employer and fourth-largest overall, according to the Hagerstown-Washington County Economic Development Commission's 2007 Business & Industry Directory.

Citi expects its restructuring plan to save about $2 billion this year and more than $8 billion in the subsequent two years, according to a statement posted at its Web site.

The company plans to:

· Eliminate layers of management

· Consolidate certain functions

· Increase shared services

· Centralize more of its purchases

· Simplify and standardize its computer systems

Other Citi subsidiaries include Citibank, CitiFinancial, Primerica, City Smith Barney and Banamex.

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