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Citigroup is undergoing significant organizational changes, leading to job reductions as part of a strategy to streamline operations and cut costs. The bank is on course to eliminate tens of thousands of positions by 2026.
A recent report from Bloomberg highlights that several managing directors were let go this week from Citigroup’s Wealth at Work division, which provides services to clients affiliated with professional services firms. Additionally, a team specializing in data acquisition and analysis for clients was also disbanded.
The layoffs are a tactical move as Citigroup aims to reduce operational expenses. In a statement in January 2024, CEO Jane Fraser confirmed that the bank is looking to cut 20,000 jobs by 2026, aiming to save approximately $2.5 billion in the process.
The workforce at Citigroup was recorded at 240,000 employees at the end of 2023. The bank has already reduced its staff by 7,000 positions in the first quarter of 2024, concluding the year with a total of 229,000 employees, reflecting a net decrease of roughly 10,000 roles within that timeframe.
Fraser noted during a recent earnings call that the bank has gone through a major organizational simplification, eliminating management layers, which has enhanced decision-making processes and improved service to clients.
In related developments, Citigroup’s Chief Financial Officer Mark Mason mentioned earlier this week that the bank plans to escalate its severance payment provisions, setting aside double the usual amount for such costs in 2025. While severance costs typically hover around $300 million, this year they are projected to reach $600 million.
In the preceding year, severance expenses for Citigroup were notably higher, approaching $700 million.
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