NEW YORK: Citigroup plans to cut 20,000 jobs over the next couple of years as part of a corporate reorganization designed to boost profits and return cash to shareholders, the US bank said Friday.
The downsizing was laid out in a presentation released in connection with the New York-based lender’s fourth-quarter results in which it reported a large loss. The move will put headcount at about 180,000 in the 2026 time period, down from 240,000 at the end of 2022 — while also reflecting the expected spinoff of Citi’s Mexico subsidiary, Banamex.
Citi Chief Executive Jane Fraser has unveiled a corporate overhaul with five business lines instead of two.
The bank has also significantly shrunk its global consumer banking footprint, divesting assets in China, Vietnam and other markets.
“Last month we announced consequential changes that align our organizational structure with our strategy and changes how we run the bank,” Fraser said.
“When completed, we will have a simpler firm that can operate faster, better serve our clients and unlock value for our shareholders.”
Overall, Citi reported a fourth-quarter loss of $1.9 billion compared with profits of $2.5 billion in the 2022 period. Revenues fell three percent to $17.4 billion.
The results were weighed down by several cost items, including $780 million for severance and other costs expenses connected to the reorganization.
Citi Chief Financial Officer Mark Mason said the fourth-quarter charge corresponds to 7,000 job cuts over the next year.
Other one-time costs included a $1.7 billion special assessment to replenish a Federal Deposit Insurance Corporation (FDIC) emergency fund after the failures of Silicon Valley Bank and Signature Bank.
Citigroup also booked reserves of $1.3 billion associated with risks connected to Argentina and Russia, plus a hit of $880 million from the devaluation of the Argentine peso.
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