Citigroup Announces Plan To Trim 20,000 Jobs Over Next Two Years

New Delhi: Citigroup is planning to trim down its workforce by 20,000 jobs over the next few years, aiming to boost profits and give back cash to its shareholders, as announced by the US bank on Friday. The restructuring details were shared alongside the fourth-quarter results, where the bank reported a substantial loss.

By 2026, Citigroup’s employee count is expected to be around 180,000, down from 240,000 in 2022. This reduction also considers the anticipated spinoff of Citi’s Mexico subsidiary, Banamex. (Also Read: 8 Game-Changing Govt Women Empowerment Schemes In India)

Jane Fraser, the CEO of Citi, has introduced a major corporate revamp, shifting to five business lines from the previous two. The bank has also scaled down its global consumer banking presence by selling off assets in countries like China and Vietnam. (Also Read: Japan And Singapore Have World’s Strongest Passport; Check India’s Ranking)

Fraser stated, “Last month we announced consequential changes that align our organizational structure with our strategy and changes how we run the bank. When completed, we will have a simpler firm that can operate faster, better serve our clients and unlock value for our shareholders.”

In the fourth quarter, Citigroup reported a loss of $1.9 billion, a notable drop from the $2.5 billion profit in the same period in 2022. Revenues saw a three percent decline, amounting to $17.4 billion.

Several expenses, including $780 million for severance and other reorganization costs, contributed to the fourth-quarter charge. Citi’s CFO, Mark Mason, mentioned that this charge corresponds to 7,000 job cuts over the next year.

Additional one-time costs included a $1.7 billion special assessment to replenish a Federal Deposit Insurance Corporation (FDIC) emergency fund after the failures of Silicon Valley Bank and Signature Bank.

Citigroup also recorded reserves of $1.3 billion related to risks associated with Argentina and Russia, along with an $880 million impact from the devaluation of the Argentine peso.

Despite the challenges, Citigroup’s shares experienced a 0.8 percent increase in morning trading.