Citigroup Slashes 1,000 Jobs in Major Cost-Cutting Drive

Citigroup Announces Significant Workforce Reduction

Citigroup Inc. is shedding about 1,000 jobs this week, a significant move by Chief Executive Officer Jane Fraser to rein in expenses and improve profitability at the U.S. banking giant. The cuts aim to streamline operations and boost lagging returns.

Cost-Cutting Strategy

The reduction is a key step in Citigroup's multiyear plan to eliminate 20,000 positions by the end of 2026. The bank, which employed 227,000 people as of September, is aggressively trimming its workforce to address inefficiencies.

CEO Jane Fraser, who took the helm in 2021, has made streamlining the Wall Street institution a priority. Her tenure has seen the bank exit substantial parts of its international retail operations and overhaul its core structure.

Efficiency and Future Plans

Citigroup stated these changes reflect necessary adjustments for staffing levels, locations, and expertise to match evolving business needs. Efficiencies gained through technology and ongoing transformation efforts are also driving these decisions.

The bank still faces the challenge of eliminating several thousand more jobs this year to meet its 2026 target. This includes the eventual IPO of its Mexican retail banking unit, Banamex, which will account for 40,000 departures.

Leadership and Market Context

Fraser's leadership has been further solidified this year as she also assumed the role of board chair. Meanwhile, Chief Financial Officer Mark Mason is set to depart by year-end, seeking new CEO opportunities.

Despite a strong 2023 where Citigroup shares surged 66%, the bank's stock dipped 3.1% recently following calls for credit card rate caps.