Citigroup, a multinational investment bank based in the US, is planning to reduce its workforce by at least 20,000 jobs over the next two years following its worst quarter in 14 years. The bank aims to downsize its global staff of 239,000 by approximately eight per cent through a comprehensive reorganisation process. As part of its final stage of the initial public offering, Citigroup will also exclude 40,000 employees when spinning off and listing its Mexican consumer unit, Banamex. The bank aims to reach a target staffing level of 180,000 employees.
The bank is expected to announce additional organisational changes during the last week of January. The job cuts are part of Citigroup’s efforts to streamline its structure, which will be largely completed in the current quarter and result in $1 billion in savings. The restructuring plan will also eliminate approximately 5,000 predominantly managerial positions.
In December last year, Citigroup announced partial bonuses for all its laid-off employees based on their tenure. This was part of the bank’s extensive reorganisation process, which is set to be concluded by March 2024. In addition, Citigroup’s management and consultants are considering reducing the workforce by at least 10 per cent in 2023, affecting various key divisions, as part of the restructuring plans led by Jane Fraser, the CEO of 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.
