Global banking giant Citigroup has announced plans to trim its workforce by 10%, equating to around 20,000 jobs, over the next two years as part of a significant corporate restructuring initiative.

Workforce Reduction Details

Citigroup revealed its intention to let go of approximately 20,000 employees over the “medium term” following the presentation of its fourth-quarter earnings late on Friday. This move marks a substantial shift in the bank’s operational strategy.

CEO’s Perspective

Citigroup CEO Jane Fraser described 2024 as a pivotal moment for the US banking conglomerate, signaling a transformative phase amid the corporate overhaul.

Financial Performance and Implications

The bank reported a fourth-quarter loss of $1.8 billion, primarily attributed to significant restructuring costs amounting to $3.8 billion, as well as disengagement from the Russian market and exposure to economic challenges in Argentina. Fraser acknowledged the disappointing fourth-quarter results while emphasizing the progress made in simplifying Citigroup’s operations and executing its strategic vision throughout 2023.

Strategic Direction

Fraser had previously unveiled a comprehensive overhaul plan for the third-largest US bank by assets in September of the previous year. As part of this initiative, Citigroup aims to streamline its operations and enhance efficiency.

Financial Projections

Citigroup anticipates incurring severance and reorganization expenses of up to $1 billion in the current year as it progresses with its workforce reduction strategy and corporate realignment efforts.

Prior Layoff Initiatives

The company has previously undertaken multiple rounds of layoffs, starting with senior management layers. Another round of job cuts is reportedly scheduled for January 22, as Citigroup continues to execute its restructuring agenda.

In summary, Citigroup’s workforce reduction initiative underscores its commitment to adapt to evolving market dynamics, enhance operational efficiency, and position itself for sustainable growth in the ever-changing global banking landscape.