Citigroup plans to cut 20,000 employees over the next two years following a $1.8 billion net loss in the fourth quarter of 2023, marking its worst quarter in 15 years. The layoffs aim to save $2.5 billion in the long term. Factors contributing to the loss include a $1.7 billion charge related to the regional banking crisis, an $880 million loss in Argentina, and $800 million in restructuring costs associated with 7,000 layoffs in 2023. These reductions align with CEO Jane Fraser’s strategy to streamline operations and enhance profitability, though she acknowledged the disappointment of the recent results. Despite the challenging impact on morale, CFO Mark Mason emphasized the firm’s clear strategy and expected momentum.
In addition to the 20,000 job cuts, Citigroup will also shed 40,000 employees from its Mexican retail unit through an IPO, reducing the total headcount from 240,000 to around 180,000. The global scale of the layoffs is part of Fraser’s broader restructuring efforts announced in September, focusing on leadership changes and accountability to achieve a leaner staff. The bank anticipates up to $1 billion in severance pay and reorganization costs in the coming years. Citigroup’s shares were down 1.2% following the announcement.
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