Citigroup plans to cut 20,000 global jobs in the medium term, the US bank said on Friday, as it embarks on a major restructuring, particularly in its international operations..
In mid-September, CEO Jane Fraser had disclosed that the restructuring would be accompanied by a major reorganisation of the bank's hierarchical structure, the biggest in nearly two decades.
Excluding its retail-banking arm in Mexico, the New York-based group employed around 200,000 staff by the end of 2023. It plans to reduce that number to 180,000, according to recent documents.
At a conference call, CFO Mark Mason revealed that a $780-million provision passed in the fourth quarter of 2023 would be used to cover approximately 7,000 job cuts in 2024.
Citigroup has embarked on a significant strategic realignment that includes pulling out of many international retail banking subsidiaries. Part of the group's plans include floating its Mexican subsidiary, Banamex, which provides services to individuals and SMEs on the stock exchange.
Broadly speaking, Citi is refocusing on institutional clients, private banking, wealth management, and credit cards, while continuing to serve the US retail banking market.
This overhaul is expected to result in annual savings of approximately $2 to $2.5 billion.
In 2006, Citigroup was America’s largest bank, boasting a workforce of 325,000. However, burdened heavily by significant portfolios of risky assets, including ‘subprime’ loans, the group was hit hard by the financial crisis of 2008.
Being more internationally oriented than its US rivals, it is also more vulnerable to international crises, such as the invasion of Ukraine and the recent devaluation of the Argentine peso.
