Citigroup is working to reduce its workforce by about 20,000, according to reports.
The company plans to eliminate roughly 10% of its workforce by the end of 2026, The Wall Street Journal reported. The move is part of the company’s restructuring and cost-cutting plans.
CEO Jane Fraser has offloaded some of the company’s consumer banking business and refocused on corporate clients in the U.S. and elsewhere, according to the WSJ. That move, WSJ reported, is expected to reduce expenses between $51 billion and $53 billion over the next several years.
The New York-based company announced in a news release last week a fourth-quarter loss of nearly $2 billion.
“While the fourth quarter was very disappointing due to the impact of notable items, we made substantial progress simplifying Citi and executing our strategy in 2023,” Fraser said. “We restructured around five core, interconnected businesses to align our organization with our strategy and to provide greater transparency into their performance.”
Citigroup’s net loss for the last quarter of 2023 was $1.8 billion on $17.4 billion in revenue. That compares to net income of $2.5 billion on $18 billion in revenue over the same period a year ago. The 2023 fourth-quarter results included:
- Expenses associated with FDIC special assessment of about $1.7 billion pre-tax.
- A reserve build of $1.3 billion associated with transfer risk in Argentina and Russia.
- Pre-tax revenue impact from the fourth-quarter devaluation of the Argentine peso of about $880 million.
- Restructuring charge of about $780 million as part of Citi’s organizational simplification.
In 2023, Citigroup reported $9.2 billion in net income on $78.5 billion in revenue — down from $14.8 billion in net income on $75.3 billion in revenue the previous year. The company has an office in Irving.
