Citigroup plans to cut 20,000 jobs over the next few years as part of a corporate restructuring designed to boost profits and return cash to shareholders, the U.S. bank said Friday.
The downsizing came in a presentation released alongside the New York-based lender’s fourth-quarter results in which it reported a big loss.
The move would put the headcount at about 180,000 by the 2026 deadline, 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 unveiled a corporate overhaul with five business lines instead of two.
The bank has significantly shrunk its global consumer banking footprint, divesting assets to China, Vietnam and other markets.
“Last month we announced the resultant changes that align our organizational structure with our strategy and transform how we run the bank,” Fraser said.
“When complete, we will have a simple firm that can operate quickly, better serve our clients, and unlock value for our shareholders.”
Overall, Citi reported a loss of $2.5 billion in the fourth quarter compared to $1.9 billion in profit over the 2022 period. Revenue fell three percent to $17.4 billion.
The results were weighed down by several expense items, including $780 million for severance and other costs associated with restructuring.
Mark Mason, Citi’s chief financial officer, said the fourth-quarter charge corresponds to 7,000 job cuts over the next year.
