Citigroup has decided to reduce its reliance on third-party workers. The bank plans to hire more staff for its internal technology team and will lay off 30 percent of its information technology (IT) contractors. Reports indicate that Citigroup intends to work with only 20 percent of external contractors, down from the current 50 percent.
Currently, the bank employs around 48,000 people in its IT division and aims to increase that number to 50,000, according to media reports. This change reflects the bank’s focus on expanding its internal technology team to enhance the safety and reliability of its systems and processes. Ultimately, Citigroup seeks to increase efficiency and revenue growth while strengthening its risk management and data governance.
Recently, Citigroup has faced rising regulatory costs and penalties due to inadequate controls and weak data governance. The bank paid over $130 million to address data management issues highlighted as far back as 2020.
In October 2024, Citigroup warned its employees about potential fraud and unethical behavior within the company. At that time, the bank mentioned that it would consider implementing stricter oversight on the work performed by contractors. Reports of fraud involving contract workers may have influenced the decision to reduce the number of IT contractors. A memo was issued encouraging employees to report any suspected misconduct or breaches of company policies.
