Citigroup announced today it will eliminate 11,000 jobs in order to cut costs, reducing its total work force by about 4 percent. The layoffs come after former CEO Vikram Pandit was replaced in October by Michael Corbat, a move engineered by company chairman Michael O’Neill. When Corbat came on board as CEO he told analysts he planned to continue a strategy focusing on the bank’s core businesses, a statement which worried some that he planned to pare down the workforce.

“These actions are logical next steps in Citi’s transformation,” Corbat said in a statement. “While we are committed to—and our strategy continues to leverage—our unparalleled global network and footprint, we have identified areas and products where our scale does not provide for meaningful returns.”

The eliminated jobs include 1,900 in the institutional clients division, 6,200 in consumer banking and 2,600 positions in operations and technology. The move is expected to save the bank as much as $1.1 billion in expenses. In the past five years, Citigroup has already reduced its workforce by 33 percent, leaving it with about 250,000 current employees.

Corbat may not be done cutting jobs, however.

“We will further increase our operating efficiency by reducing excess capacity and expenses,” he said in a statement.

Nancy Bush, a bank analyst and contributing editor at SNL Financial, told Reuters she expects Corbat to continue the reorganization for the next two years.

“I look at this as the first cut,” she said. “Corbat will be forever digging and looking for places to cut, and inevitably personnel will be the biggest part of that.”

The workforce reduction will result in a pre-tax charge for Citigroup of $1 billion against its fourth-quarter earnings, but ultimately reduce annual revenues by “less than $300 million,” according to the bank. Citigroup shares were up by more than 7 percent in afternoon trading.

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