After a long stretch of empire-building, it has been shrinking for the past several years, shedding units and trying to find a business model that's more streamlined and efficient.
Corbat became CEO in October after Vikram Pandit unexpectedly stepped down. Pandit had reportedly clashed with the board over the company's strategy and its relationship with the government.
While the job cuts are among the first major moves by Corbat, they are in line with Pandit's blueprint. Citi's roster of 262,000 employees is down from 276,000 at this time in 2009.
Bank of America and Morgan Stanley have also shed jobs over that period.
In a statement Wednesday, Corbat said his bank remains committed to "our unparalleled global network and footprint." However, he added: "We have identified areas and products where our scale does not provide for meaningful returns."
He promised that the bank would continue to trim, whether in "technology, real estate or simplifying our operations."
The paring hasn't always gone as well as Citi has hoped. This fall, for example, when Citi negotiated the sale of its stake in the retail brokerage Morgan Stanley Smith Barney, it got far less than it wanted from the buyer, Morgan Stanley.
Corbat said Citi "has come a long way over the past several years."
Citi said it expects the cuts to save $900 million next year, and more in the following years. They will be a drag, though, in the short term: Citi said it expects to record pre-tax charges of approximately $1 billion in the fourth quarter.