Citigroup unveiled plans on Friday to eliminate 20,000 jobs globally over 2023 and 2024, representing nearly 10% of its workforce, as the banking giant pursues a sweeping corporate reorganization.
Accelerating Corporate Revamp
The layoffs are part of Citi CEO Jane Fraser’s ongoing makeover to simplify operations, exit non-core markets and boost profitability.
Citi aims to operate with around 180,000 employees by 2026, down from over 240,000 currently, factoring in the upcoming Mexico subsidiary divestment.
“Last month, we announced changes aligning our structure with strategy for how we run the bank. We will have a simpler, faster firm to better serve clients and unlock shareholder value,” said Fraser.
The accelerated corporate revamp includes realigning consumer banking and institutional clients under five business lines instead of two segments previously.
Initial 7,000 Job Cuts
Citi took a $780 million charge in Q4 2022 earnings related to around 7,000 job cuts expected over next year. Further reductions will occur in 2024 and 2025.
The restructuring contributed to Citi reporting $1.9 billion loss last quarter versus $2.5 billion profit a year ago, as revenues slipped 3% to $17.4 billion.
“Our streamlined model will enable us to invest in our transformation and deliver sustainable returns for our shareholders,” said CFO Mark Mason, framing cuts as a pathway to improved competitiveness.
The upcoming job losses reflect Citi’s exiting of various overseas consumer banking markets to refocus on global wealth management and institutional operations.Copy
