Citigroup Announces 20,000 Job Reductions Over Two Years

Citigroup intends to eliminate 20,000 positions within the next two years, as outlined in their latest strategy revealed alongside their Q4 financial report. This restructuring aims to enhance profitability and shareholder value.

The bank’s workforce is projected to shrink from 240,000 at the end of 2022 to approximately 180,000 by 2026, partly due to the expected sale of their Mexican branch, Banamex.

CEO Jane Fraser has introduced a significant restructuring with a more streamlined operation model, shifting from two to five business divisions. Citigroup is also scaling back its international consumer banking, exiting markets such as China and Vietnam.

Fraser stated that the restructuring will result in a more agile company that can deliver better client service and increased shareholder value.

Citi reported a Q4 loss of $1.9 billion, a decline from $2.5 billion in profits in the same quarter of the previous year, with revenues dipping to $17.4 billion.

The loss included costs related to the restructuring, like a $780 million severance package tied to an anticipated 7,000 job cuts over the next year, according to CFO Mark Mason.

Other significant expenses were a $1.7 billion contribution to the FDIC fund following bank collapses and allocations for risk exposure in Argentina and Russia, as well as losses from the Argentine peso's devaluation.

In response to the news, Citigroup's shares saw a slight increase of 0.8% in morning trading.