Citigroup Inc. (NYSE: C) is preparing for a subsequent wave of employee layoffs scheduled for March, continuing its ongoing efforts to downsize after having already cut approximately 1,000 positions earlier this month. This forthcoming reduction will specifically target high-level roles, chiefly managing directors and other senior personnel spread across various segments of the bank, according to information from a source cited on Thursday by Reuters.
This additional round of job cuts is part of a broader, multi-year restructuring initiative that was unveiled by the bank two years ago. Under this plan, Citigroup aims to reduce its workforce by roughly 20,000 employees by the conclusion of 2026. As of the end of September, the bank employed around 227,000 individuals and seeks to bring this number down to approximately 180,000 to better align with its strategic operational objectives.
Jane Fraser, Citigroup’s Chief Executive Officer, communicated in a recent internal memo to employees the critical role that automation and artificial intelligence (AI) will play in reshaping the company’s workforce. She explained that this technological evolution will eliminate some positions, transform others, and give rise to new roles within the organization. Fraser emphasized that the headcount will continue to shrink as the bank works on simplifying its operational framework and boosting productivity, with technological advancement serving as a key driver behind long-term efforts to cut costs and improve efficiency.
During the company’s recent earnings call, Fraser reiterated this outlook, stating, “We have been reducing headcount, and we expect that trend to continue.” This aligns with the company’s transformation agenda aimed at improving agility and cost-effectiveness.
A spokesperson for Citigroup informed Benzinga that the adjustments in staffing levels, geographic presence, and expertise reflect ongoing refinements to better suit current business requirements. They stressed that these changes incorporate efficiencies achieved through technological progress and demonstrate tangible progress toward the bank’s Transformation objectives, which are approaching their target state.
The spokesperson also conveyed the bank’s appreciation for the contributions of employees affected by these decisions, underscoring a respectful approach to workforce realignment.
Earnings Overview
In its latest quarterly financial results released earlier this month, Citigroup delivered mixed performance figures. The bank posted adjusted earnings per share of $1.81, surpassing analysts’ expectations of $1.68. However, total revenue came in at $19.87 billion, which fell short of the $20.53 billion forecast by market estimates. Net income declined by 13% on a year-over-year basis to $2.5 billion, influenced significantly by a $1.1 billion after-tax loss related to the bank’s decision to exit the Russian market.
On the interest income front, net interest income increased by 14%, reflecting some positive dynamics in core banking activities. Despite this, operating expenses rose by 6%, which contributed to a deterioration in the efficiency ratio, highlighting ongoing challenges in managing costs while pursuing growth and transformation goals.
Market Response
Following these earnings announcements and news of the impending layoffs, Citigroup’s share price experienced downward pressure, decreasing by 1.88% to $113.48 at the time of reporting Friday, based on data from Benzinga Pro.
The bank continues to navigate a complex operational landscape involving workforce realignment, technology integration, and financial performance optimization as it executes its long-term strategic plan.