Citigroup Announces 20000 Job Cuts After Disappointing Quarter

Citigroup Announces 20000 Job Cuts After Disappointing Quarter

VoM News Desk | January 13, 2024 | 11:55 AM IST | Breaking News | Follow on Google News

Citigroup Announces 20000 Job Cuts After Disappointing Quarter/Reuters

Citigroup Announces 20000 Job Cuts After Disappointing Quarter

Citigroup Announces 20000 Job Cuts After Disappointing Quarter

Citigroup revealed plans to cut 20,000 jobs over the next two years following a “clearly disappointing” quarter that resulted in a $1.8 billion loss, attributed to one-off charges. The bank, amidst a multi-year effort to boost profits and enhance its stock performance, aims to reduce its global workforce by roughly 8%, including layoffs from a comprehensive reorganization.

Despite the loss, Citigroup’s shares rose over 1%, and some analysts noted the bank’s underlying business resilience when excluding the one-off charges. The restructuring includes spinning off and listing its Mexican consumer unit Banamex, with an eventual initial public offering. The bank expects to report between $700 million and $1 billion in charges this year related to severance costs and the ongoing reorganization.

Citigroup’s revenue fell 3% to $17.4 billion in the quarter, with declines in trading division revenue offset by increases in banking and U.S. personal banking. CEO Jane Fraser emphasized that the bank’s efforts to simplify its structure and achieve cost savings would be largely completed this quarter, aiming to save $1 billion and eliminate around 5,000 managerial roles.

As Citigroup navigates restructuring challenges, industry observers remain cautious, questioning the bank’s ability to execute its plans effectively and grow its core business amidst stiff competition and economic uncertainties.

VoM News Desk

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