Citi group Plans 20,000 Job Cuts Over Two Years

Citigroup intends to shed 20,000 jobs over the next two years, or approximately 10% of its global workforce, as it seeks to streamline operations.

The reductions are part of a broad reorganization outlined by CEO Jane Fraser last year.

The UK-born executive, who took the helm in 2021, predicted that 2024 will be a “watershed moment” for the company.
Citi has already spun off several overseas assets and plans to list its Mexican unit separately.

The reorganization announced last year aims to remove layers of bureaucracy within the bank, reduce levels of regional administration overseas, and close some units.

Ms Fraser stated that the bank had made progress toward its strategy despite a $1.8 billion (£1.4 billion) deficit in the last three months of 2023, the lender’s largest quarterly loss in years.

Citi group Plans 20,000 Job Cuts Over Two Years

“Given how far we are down the path of our simplification and divestures, 2024 will be a turning point,” she said.

Citi, which employs over 16,000 people in the UK, refuses to comment on how many job losses would occur or which units would be most affected.

However, the bank’s size will significantly reduce as the plans advance.

According to Chief Financial Officer Mark Mason, the bank expects to employ approximately 180,000 people by 2025 or 2026, up from over 240,000 at the beginning of 2023.

According to the bank, the restructuring might cost $1 billion this year alone, up from $800 million in the previous quarter. It is estimated to save $2.5 billion in the medium future.

Citi group Plans 20,000 Job Cuts Over Two Years

Citibank is one of the five largest banks in the United States.
Investors have put pressure on the company to improve its performance. Profits lag those of its counterparts, and it has previously faced regulatory concerns, including fines for money-laundering procedures.

Citi group Plans 20,000 Job Cuts Over Two Years

Citi asserted that one-time occurrences like the Argentine peso’s devaluation and a special fee imposed on US banks to bolster its deposit reserve as a result of several failures last year were to blame for the loss in the most recent quarter.

Revenue increased 4% from 2022 to $78.5 billion, but profits fell 38% to $9.2 billion.

For instance, close rival Wells Fargo’s revenue increased 11% last year to $82.5 billion, while profits increased by almost 40%.

JP Morgan’s sales increased 23% to more than $158 billion, while profits increased by almost 30%.
On Friday, Citi shares fell 1.4%.

SOURCE – (BBC)