Citigroup to Announce Fresh Job Cuts After Bonuses, Report Reveals

Citigroup is getting ready for another round of layoffs in March, continuing a personnel reduction initiative that has already resulted in the elimination of roughly 1,000 positions earlier this month. According to media reports, the proposed layoffs will be made public following the payment of yearly bonuses. Let’s explore the core reasons behind the layoffs.

The Main Objectives behind Citigroup’s Layoffs

The bank's continuous efforts to reduce expenses, streamline operations, and restructure its business under a multi-year turnaround plan include the layoffs. Managing directors and other senior staff from several business areas are anticipated to be impacted by the March layoffs, according to Reuters. Some senior managers have already been moved to other departments in an attempt to find positions before the headcount cut.

Several senior employees were also affected by the job cuts that were revealed earlier this month. The most recent layoffs coincide with Citigroup's ongoing extensive reorganisation under CEO Jane Fraser. The goal of the reorganisation is to reduce expenses, address long-standing regulatory concerns, and boost profitability in order to catch up to important competitors. As part of its continuous transformation, Citigroup said in a statement that it intends to keep cutting staff in 2026.

These modifications are a result of the group's efforts to make sure that its locations, staffing numbers, and areas of speciality are in line with the demands of the business.  The efficiency it has achieved through technology and the progress it is making in its transformation work, which is rapidly approaching its target state.

Mark Mason’s Response on Citigroup’s Layoffs

During a recent earnings call, Citigroup Chief Financial Officer Mark Mason stated that the bank's global headcount had shrunk. The bank now employs 226,000 people, falling from roughly 240,000 in 2022. Mason pointed out that the bank spent over $800 million on severance-related costs last year and said more cuts are probably coming.

As Citigroup takes a step back and examines the trajectory of its expense base, he added, the bank has been cutting headcount and expects that trend to continue. The second stage of Fraser's plan is represented by the layoffs and reorganisation that were announced in November. Fraser was elected chair of the board in October and received a one-time equity award assessed at $25 million for progress on the turnaround. He assumed the role of CEO in 2021.