Citigroup (C.N) is set to reduce its workforce in New York by 286 positions, as recent submissions to the State Department of Labor indicate. This move is part of the financial institution’s most significant restructuring effort in many years.
Citigroup Plans To Fire 286 Employees in New York
Filings from earlier this week revealed that the job cuts would affect 239 staff members from its primary banking division, 44 from its broker-dealer segment, and three from its technology department.
In January, Citigroup announced plans to eliminate 20,000 jobs over the forthcoming two years, a decision that came in the wake of what it described as a “clearly disappointing” quarter. This period saw the bank incur one-off charges, leading to a $1.8 billion loss.
The planned job reductions are a critical component of Citigroup’s strategy to streamline its operations globally, aiming for an approximate 8% reduction in its workforce by 2026. As Chief Financial Officer Mark Mason explained during a press briefing, this initiative includes layoffs resulting directly from the ongoing reorganisation efforts.
Don’t miss out the latest news, subscribe to LeapRate’s newsletter
CEO Jane Fraser unveiled this extensive reorganisation strategy in September to streamline the bank’s operations. This strategic overhaul follows Citigroup’s exit from non-essential markets and its renewed focus on more lucrative sectors.
Fraser’s strategy is a bold attempt to refocus the bank’s operational priorities, ensuring it remains competitive and relevant in the rapidly evolving financial landscape. The restructuring reflects Citigroup’s commitment to adapting its business model in response to changing market dynamics and regulatory environments.
By divesting from less profitable or non-essential markets, the bank aims to reallocate resources to sectors where it holds a competitive edge or sees potential for growth.
Such strategic shifts are crucial for large financial institutions like Citigroup, enabling them to navigate the challenges of the global economy while striving for sustainable growth and shareholder value.
