Citigroup, a US multinational investment bank, is set to reduce its workforce by at least 20,000 jobs over the next two years following its worst quarter in 14 years. The company revealed that the global staff of 2,39,000 will be downsized by approximately eight per cent, with the layoffs stemming from a comprehensive reorganisation.
In addition, as part of its final stage of the initial public offering, Citigroup will no longer include 40,000 jobs when spinning off and listing its Mexican consumer unit, Banamex. The bank aims to reach a target staffing level of 1,80,000 employees.
The bank is anticipated to unveil further organisational changes during the last week of January.
The job cuts have been said to be a part of the bank’s efforts to streamline its structure which will be largely completed in the current quarter, resulting in $1 billion in savings and the elimination of around 5,000 predominantly managerial roles.
In December last year, Citi announced partial bonuses for all its laid-off employees determined by their tenure. It was also a part of the bank’s extensive reorganisation set to be concluded by March 2024.
In 2023, Citigroup’s management and consultants were considering reducing the workforce by at least 10 per cent, affecting various key divisions, as part of the restructuring plans led by Jane Fraser, CEO, Citigroup. The bank had previously announced job cuts as part of a comprehensive plan in September but determined the exact number of layoffs and cost reductions in the current quarter
