Citigroup is apparently preparing to follow through on its promise it shed as many as 20,000 operations and technology positions, according to an interview with CEO Mike Corbat that was published Tuesday in the Financial Times.
CEO Mike Corbat has suggested that “tens of thousands” of people working in Citi’s call centers will likely be replaced by machines in the near future – machines that can “radically change or improve” customers’ experience while cutting costs. Corbat also ruled out a merger like the $66 billion SunTrust-BB&T tie-up that is expected to usher in a new wave of bank consolidation.
Corbat’s comments, according to the FT, were the “most explicit” the company has ever been about how its spends the $8 billion it has allotted every year for technology.
Citigroup chief executive Mike Corbat has suggested that “tens of thousands” of people working in the US bank’s call centres are likely to be replaced by machines that can “radically change or improve” customers’ experience while cutting costs. Mr Corbat, who runs America’s fourth-largest bank by assets, made the comments in an interview with the Financial Times in which he also ruled out Citi’s involvement in any wave of US banking consolidation triggered by the $66bn SunTrust-BB&T merger and justified its continued presence in China. Under pressure to bring its cost base in line with peers, Citi executives have been upfront about the impact of technology on their 209,000-strong global workforce, including last summer’s warning that as many as half of the 20,000 operations staff in its investment bank could be supplanted by machines.
Though, fortunately for the few people who will still have job’s in Citi’s call centers once the bloodletting is over, Corbat said the bank doesn’t intend to get rid of all of its human employees. Just most of them.