Citigroup Inc, the world's biggest financial company, plans to cut about 2,000 jobs at its Japanese consumer finance business, a third of the total, after lowering its rating on the nation to below investment grade, the Nihon Keizai newspaper reported.
The bank will close as many as 500, or half of its offices in Japan, by the end of the year, the report said, citing a document distributed to senior bank officials. Citigroup opened its first branch in Japan in 1902.
Japan's consumer finance industry is facing slowing growth in new lending because fewer customers meet credit requirements.
Personal bankruptcies rose by a third last year to 214,634 cases, because of falling wages and record unemployment.
"Citigroup was expanding aggressively until early last year," said Masamitsu Ohki, a consumer finance analyst at Deutsche Securities. "The report raises concern the consumer finance market in Japan may not pick up."
A committee at Citigroup added Japan to its "watch list," which also includes Argentina, judging the economy likely won't expand as much as in the past, the Nihon Keizai report said.
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