Citigroup To Slash 20,000 Jobs Over Next Few Years
Citigroup aims to shed 20,000 positions over the next few years as part of a company reorganisation aimed at increasing earnings and returning cash to shareholders, the US bank announced Friday.
The downsizing was outlined in a presentation given in conjunction with the New York-based lender's fourth-quarter results, which showed a significant loss.
The plan will reduce personnel to approximately 1,80,000 by 2026, down from 2,40,000 at the end of 2022, while also reflecting the impending spinoff of Citi's Mexico affiliate, Banamex.
Citi is expected to make additional organisational changes in the final week of January. "Efforts to simplify its structure will be largely completed this quarter, saving $1 billion and eliminating about 5,000 mostly managerial roles," said Jane Fraser, the company's chief executive officer.
Citigroup estimated that the job losses might cost up to $1.8 billion but save $2.5 billion annually by 2026.
The multinational bank reported a $1.8 billion loss in the fourth quarter of 2023 (October-December), owing to $3.8 billion in charges disclosed in a filing, which included reorganisation expenses, a reserve for currency depreciation and instability in Argentina and Russia, and a $1.7 billion payment to replenish a government deposit insurance fund.
According to CFO Mason, the lender's revenue growth will be unaffected by the employment layoffs.
This year, the bank intends to disclose charges ranging from $700 million to $1 billion for severance and reorganisation.
