Major bank announces elimination of 20,000 jobs after losses
Citigroup on Friday said it will slash 20,000 jobs.
The reductions, detailed in the company’s fourth-quarter financial results deck, can be linked to Citi continuing to execute its ongoing reorganization.
Citi will axe the positions "over the medium-term," something that should ultimately bring its expenses down by $2-2.5 billion, according to the company.
The logo of Citigroup Inc. at the entrance to the bank's office in Paris, France, on Monday, February 27, 2023. Citigroup is building a new trading floor in Paris as the Wall Street giant prepares to nearly double its staff in the French city. ( Phot
The job cuts will shrink the roughly 200,000-person workforce excluding Mexico that Citi reported it employed at 2023’s year-end by 10%. When counting Mexico, it directly employed 239,000, according to Citi.
CITIGROUP OUTLINES PROCESS FOR LAYOFFS, REASSIGNMENTS IN MEMO
Citi projected medium-term layoffs and reorganization will bring costs in the $700 million to $1 billion range in its fiscal 2024 year, according to the company.
A Citibank branch in San Francisco, California, on Friday, April 7, 2023 (Photographer: David Paul Morris/Bloomberg via Getty Images)
The ongoing corporate reshuffling seeks to "speed up decision making, drive increased accountability and strengthen the focus on clients," Citi said in September. It has entailed making the people running the company’s five businesses direct reports of CEO Jane Fraser and cutting layers of management, among other initiatives.
In the fourth quarter, it racked up restructuring costs of about $800 million and severance costs of roughly $100 million, the company said.
Citi saw $17.44 billion in total fourth-quarter revenues and nearly $1.84 billion in net losses.
Citibank logo (Photo Illustration by Omar Marques/SOPA Images/LightRocket via Getty Images)
"Given how far we are down the path of our simplification and divestitures, 2024 will be a turning point as we’ll be able to completely focus on the performance of our five businesses and our Transformation," Fraser said in a statement. "We remain confident in our ability to adapt to evolving capital and macro environments to reach our medium-term targets and return capital to our shareholders, whilst continuing the investments needed for our Transformation."
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She took over as Citi’s CEO nearly three years ago.
In addition to Citi, some other companies have unveiled plans this week for layoffs, including Google, Amazon and Unity Software.
Daniella Genovese contributed to this report.
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