What's Happening?
Citigroup is preparing for another round of layoffs expected to occur in March, following a recent reduction of approximately 1,000 positions earlier this month. The upcoming layoffs are anticipated to affect managing directors and senior staff across various business lines. Some senior managers have already been reassigned in preparation for these workforce reductions. However, the exact scale and locations of the layoffs have not been confirmed. This move is part of CEO Jane Fraser's broader strategy to restructure the bank, which began after she took over in 2021. Her turnaround plan aims to reduce costs and address regulatory issues. Citigroup's workforce decreased from around 240,000 in 2022 to 226,000 by the end of 2023, with $800 million
spent on severance expenses last year.
Why It's Important?
The planned layoffs at Citigroup are significant as they reflect the bank's ongoing efforts to streamline operations and improve efficiency under CEO Jane Fraser's leadership. This restructuring is crucial for Citigroup to remain competitive in the financial sector, especially after experiencing a 65.8% increase in share value in 2025, outperforming its rivals. However, the bank faces challenges, as indicated by a 0.8% decline in shares this year. The layoffs also coincide with recent regulatory relief, as the U.S. Federal Reserve lifted certain restrictions, providing Citigroup with more operational flexibility. These changes are expected to impact the bank's long-term profitability and operational landscape.
What's Next?
Citigroup is committed to continuing workforce reductions in 2026 as part of its transformation strategy. Stakeholders will be closely monitoring how these layoffs and restructuring efforts affect the bank's performance and market position. The bank's ability to align staffing levels with current business needs will be critical in maintaining its competitive edge. Additionally, the impact of these changes on employee morale and the bank's reputation will be important factors to consider as Citigroup navigates this transition.
