Citi plans to cut 20,000 jobs as part of bank’s overhaul
Citi has announced it plans to cut around 20,000 jobs over the next two to three years
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Citi has announced it plans to cut around 20,000 jobs over the next two to three years as the bank takes further drastic steps to overhaul the global business.
Chief executive Jane Fraser said the company had a "very disappointing" fourth quarter after plunging to a net loss of $1.8billion (£1.4billion).
Citi is looking to reduce the size of its 239,000 global workforce as part of efforts to simplify the business and reduce costs.
Not including around 40,000 staff in Mexico, where the bank operates as a spin-off, it is aiming for a net headcount reduction of 20,000 in the "medium term" - between 2025 and 2026.
Citi is looking to reduce the size of its 239,000 global workforce
PA
Citi's chief financial officer Mark Mason acknowledged the job cuts would be “tough on morale”.
The move would leave Citi with about 180,000 members of staff.
The group has not revealed which regions are set to be affected.
The firm said it expects it will incur between $700million (£547.1million) and $1billion (£780million) in severance and restructuring costs this year.
UK chief executive James Bardrick said about 250 roles were being reviewed in London's Canary Wharf, where Citi's UK office is based, in October.
Citi fell to a substantial quarterly loss after generating a net income of $2.5billion in the fourth quarter of 2022.
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Citi’s chief executive Ms Fraser said: “While the fourth quarter was very disappointing due to the impact of notable items, we made substantial progress simplifying Citi and executing our strategy in 2023.
“Given how far we are down the path of our simplification and divestures, 2024 will be a turning point as we’ll be able to completely focus on the performance of our five businesses and our transformation.”
Citi is the third largest bank in the US.