SINGAPORE: Citigroup has retrenched more people in leadership this week as part of the company’s reorganisation efforts. Managers in markets, risk, and investment banking have been told of their impending dismissals, sources have told the media.
Several of the managers who were told they were being laid off were informed that their positions would no longer exist after the end of this month, sources who declined to be named told Reuters.
The CEO of Citigroup, Jane Fraser, is said to have held a conference call with the company’s managing directors to discuss an overhaul that Reuters characterised as “sweeping” in a Jan 18 (Thursday) article.
The sources said there should be more information about the retrenchments and dismissal packages next week. Reuters added that Citigroup has declined to comment on the matter.
On Jan 12, the bank said it would cut 20,000 jobs over the next two years. The last quarter of 2023 had been a “disappointing” one for Citibank, which saw losses of US$1.8 billion (S$2.41 billion).
Ms Fraser told analysts, “The fourth quarter was very clearly disappointing. We know that 2024 is critical.”
At present, Citigroup’s workforce around the globe totals 239,000, and the banking giant plans to reduce this by around 8 per cent, or 20,000 jobs, from 2024 to 2026.
Chief Financial Officer Mark Mason has told the press that the bank hopes to cut its staff to 180,000 once Banamex, Citigroup’s Mexican consumer unit, is spun off and listed in an eventual initial public offering.
Ms Fraser reportedly talked about the plan of cutting the 20,000 jobs. The CEO allegedly said 5,000 employees would be culled from selling businesses, with another 5,000 workers dismissed in the ongoing reorganization.
The other 10,000 staff will be dismissed from support functions, including technology and operations.
Citigroup, the third biggest bank in the United States, is far from the only high-profile company that has carried out retrenchments.
Last week, Google announced it was laying off hundreds of employees as it continues to focus more on Artificial Intelligence (AI). Earlier this month, Amazon also announced that it was laying off hundreds of workers from Twitch, Prime Video, and MGM studios. /TISG