Citigroup to Announce More Layoffs in March

Citigroup Continues Workforce Reduction with March Layoffs

Citigroup is expected to announce a new wave of employee layoffs in March, following approximately 1,000 job cuts conducted in January. This move is a key part of CEO Jane Fraser’s extensive restructuring plan designed to improve profitability and simplify the bank's structure.

Restructuring Plan in Action

The upcoming layoffs are part of a broader strategy to reduce costs and streamline operations. According to sources, the March cuts will likely impact managing directors and other senior employees. The bank's total workforce already decreased from 240,000 in 2022 to 226,000 by the end of last year, with the company spending $800 million on severance in 2023.

Impact and Strategic Goals

These headcount reductions are central to CEO Jane Fraser’s strategy to enhance efficiency and close the performance gap with competitors. While the bank did not comment on the specific March plans, its Chief Financial Officer has previously stated that headcount is expected to decline through 2026 as the company focuses on its expense base.

Outlook

The ongoing job cuts reflect Citigroup's commitment to its long-term turnaround strategy. Investors will be watching for further details on the scale of the layoffs and their impact on the bank's operational and financial performance going forward.

FAQ

Q: When is the next round of Citigroup layoffs?
A: A new wave of layoffs is expected to be announced in March, after employee bonuses are distributed.

Q: Why is Citigroup reducing its workforce?
A: The layoffs are a component of CEO Jane Fraser's strategy to cut expenses, simplify the bank's management structure, and boost overall profits.

Source: Reuters via Investing.com