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Citigroup to cut 20,000 jobs

By Hugh Fort in Business News, posted January 15, 2024

Citigroup has announced plans for 20,000 job cuts , approximately 10 percent of its worldwide workforce, over the next two years in an effort to streamline operations.

The job cuts are a key part of the major restructuring initiative unveiled last year by CEO Jane Fraser.

Fraser, who took over the bank in 2021, said 2024 would mark a "turning point" for the company.

Citi has already sold some of its international branches and is in the process of independently listing its Mexican division.

It also laid off senior employees in November 2023.

The restructuring aims to reduce internal bureaucracy, trim down regional management layers abroad, and eliminate certain divisions.

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Fraser said: "Given how far we are down the path of our simplification and divestures, 2024 will be a turning point," she stated."

Citi, which has over 16,000 employees in the UK, did not provide specific details on how the job cuts might impact the UK or which departments would be most affected.

However, these changes will substantially decrease the bank's overall size.

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Workforce to fall to 180,000

Citigroup Chief Financial Officer Mark Mason said the bank anticipates a workforce of around 180,000, down from about 240,000 at the beginning of 2023, by 2025/2026.

The bank anticipates the reorganization will cost up to $1 billion in 2024, adding to the $800 million spent in the most recent quarter.

However, it is expected to lead to savings of $2.5 billion over the medium term.

Citi's shares experienced a downturn on Friday, dropping by 1.4 percent.

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