Citigroup plans to shutter 376 CitiFinancial branches and let hundreds of employees go as part of a wider reorganization plan.
Of the CitiFinancial branches expected to be closed, 330 are located in the United States and 46 are located in Canada – jobs losses are estimated to total 500-600 in the U.S. and roughly 120 in Canada.
CitiFinancial, a mortgage lender which has more than 2,000 retail branches throughout North America, provides personal loans, home equity loans, home purchase loans, and refinance loans up to $400,000.
The consumer finance unit will also be split into two segments, CitiFinancial’s Full Service Branches and CitiFinancial Servicing.
The Full Service Branches will continue to originate and service personal, refinance, and home equity loans, while the Servicing branches will focus on things like loan modifications and loan restructuring.
“This reorganization will enable CitiFinancial to continue lending to US consumers while better serving its customers in need,” said Mary McDowell, Chief Executive Officer of CitiFinancial, in a press release.
“In addition, 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.”
CitiFinancial also intends to re-name its business after the “segmentation” is completed by the end of this year, and eventually sell it off entirely.
The unit is part of Citi Holdings, which was formed in 2009 to corral businesses and assets considered “non-core” to Citi.
Check out the latest list of mortgage layoffs, mergers, and closures.