Citigroup plans to lay off more employees in March — who will get impacted? Here’s what report says
According to Reuters news agency, Citigroup is expected to announce a new layoff in March this year, shortly after the American bank decided to lay off about 1,000 people in January.
Sources told the agency that the new wave of layoffs is expected to occur after bonuses are paid, but they did not specify the scale or location of the previously unreported plans.
The development comes as Citi CEO Jane Fraser continues to work on a comprehensive turnaround plan designed to cut costs, resolve regulatory issues and boost profits to help the bank catch up with rivals.
Who is likely to be affected?
According to one of the sources, the layoffs in March will most likely affect general managers and senior employees in different departments of the bank. Some senior managers have already moved to other departments to retain their roles before staff cuts begin, the agency report said.
The latest round of layoffs this month also affected many senior employees, the second source said. Reuters.
Bank to continue wave of layoffs
Citigroup said earlier this month that the bank will continue to reduce headcount in 2026. “These changes reflect adjustments we have made to ensure our staffing levels, locations and expertise are aligned with current business needs, the efficiencies we are achieving through technology, and the progress of our Transformation work approaching target status,” he said.
Chief Financial Officer Mark Mason also announced in its last earnings call on Jan. 14 that Citi’s workforce fell from 240,000 in 2022 to 226,000 employees at the end of last year.
“We are reducing headcount, and when we take a step back and look at the direction of our expense base, we expect that trend to continue,” Mason told analysts in a separate earnings call, highlighting an $800 million severance-related expense last year.
CEO Jane Fraser’s strategy
New layoffs continue These are all part of Fraser’s turnaround strategy, with another restructuring announced in November. Fraser, who became CEO in 2021, received a one-time $25 million equity award for progress on the turnaround plan and was named chairman of the board in October.
The company has publicly announced major layoffs in 2023 and 2024 as it slashes management layers and sells assets, but recent headcount reductions are being made more cautiously, according to the agency’s report.
The layoffs come as the bank receives some relief from regulators. The Office of the Comptroller of the Currency reversed a 2024 amendment to a 2020 regulatory penalty known as a consent order, while the Federal Reserve shut down notices directing the bank to correct weaknesses in its trading risk management.
