Citigroup Inc., the third-largest bank by assets in the United States, will slash its workforce by more than 11,000 jobs and take a $1 billion charge this quarter to cover workforce reduction.

The workforce reduction, which includes 1,900 job cuts in trading, investment banking and transaction services, aims to drag costs down as the banking giant is seeing its revenues drying up globally.

Michael Corbat, who took over as CEO of Citigroup Inc. just around two months back, said they wanted to improve productivity in businesses like cash equities where profits are lagging.

Announcing the job cuts, Corbat added, "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."

As per the bank's estimates, the job cuts and withdrawal from some markets will save around $900 million this year, and the annual savings will surpass $1.1 billion starting in 2014.

The recently announced job cuts will be in addition to 5,000 dismissals announced in January by the bank's ousted chief executive officer Vikram Pandit.

Citigroup jumped 6.3 per cent to $36.46. It was the biggest gain the bank enjoyed since January in the KBW Bank Index of twenty-four US lenders. Analysts at Wells Fargo & Co. and International Strategy & Investment Group Inc. have reiterated their buy ratings for the stock.