Thousands to lose jobs as US banking giant Citigroup announces job cuts

Thousands of people will lose jobs at Citigroup in 2024 as part of Chief Executive Officer Jane Fraser's bid to boost the Wall Street giant's returns.

The New York City-headquartered firm said that it expects to incur as much as $1bn in severance and reorganisation costs. These costs would be incurred as part of the company's process to eliminate 20,000 roles.

The job cuts were announced in a presentation released in connection with the lender's fourth-quarter results in which it reported a large loss.

What Citigroup will look like after job cuts?

The move will put the headcount at about 180,000 in the 2026 time period, down from 240,000 at the end of 2022.

"Last month we announced consequential changes that align our organizational structure with our strategy and changes how we run the bank," Citi Chief Executive Jane Fraser said.

"When completed, we will have a simpler firm that can operate faster, better serve our clients and unlock value for our shareholders," he added.

Citigroup's balance sheet

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 reorganisation.

How many job cuts will occur in immediate future?

Citi Chief Financial Officer Mark Mason said the fourth-quarter charge means7,000 job cuts over the next year.

Other one-time costs include a $1.7 billion special assessment to fill in a Federal Deposit Insurance Corporation (FDIC) emergency fund after the failures of Silicon Valley Bank and Signature Bank.

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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.

(With inputs from agencies)