Citigroup Inc. is set to reduce its technology workforce in China by approximately 3,500 employees, focusing on streamlining its global operations. This move is part of Citi’s broader strategy to simplify processes, boost profitability, and better position itself against increasing competition. The bank has set a target of cutting 20,000 jobs worldwide by 2026.
The layoffs will be completed by the fourth quarter at Citi’s solution centres in Shanghai and Dalian. Some affected roles may be relocated to other global centres to support the bank’s network internationally. Importantly, this downsizing will not impact Citibank (China), Citi’s local banking arm, ensuring that Chinese clients continue to receive uninterrupted service.
Separately, Citi has been working toward establishing a wholly-owned securities and futures firm in China, a process delayed by regulatory challenges both in the US and China.
Earlier this year, in March, Citi announced plans to reduce reliance on external contractors from 50% to 20%, reflecting a shift toward expanding its internal technology workforce. At that time, the IT division had about 48,000 employees, with plans to grow to 50,000 to enhance system security and process robustness.
This strategic shift also comes amid rising regulatory scrutiny and costs. Citi faced over $130 million in penalties related to data management and control weaknesses flagged since 2020, underscoring the urgency to strengthen internal controls and governance.
