Citi group layoffs 2025 have sent shockwaves across the financial industry, as Citi group cuts 20,000 jobs in a major restructuring effort.
Employees in London have already been informed that the first round of job reductions will begin next week.
However, there’s more to this story than just numbers.
Last week, Citi laid out its strategy for these layoffs, clarifying that only a small portion of the job cuts stem from Project Bora Bora, the bank’s simplification initiative.
This means that the Citi layoffs will be spread across multiple departments and executed in various phases.
Citi Group Cuts 20,000 Jobs – What is Citi’s Plan for Job Reductions:
Speaking to investors on Friday, Citi CEO Jane Fraser explained that just 5,000 of the 20,000 job cuts at Citi will come from streamlining management layers.
As part of Project Bora Bora, Citi is flattening its hierarchy, reducing its management structure from 13 layers to eight.
This shift will increase direct reports for senior staff while giving middle managers greater autonomy.
The process is already underway, with Citi reducing its managerial workforce from 12,000 to 10,800.
Fraser confirmed that the remaining 3,800 managerial layoffs at Citi will be completed by the end of Q1 this year, ultimately cutting nearly 40% of its management positions.
Where Will the Additional 15,000 Cuts Come From?
While the managerial job cuts are progressing rapidly, Citi still needs to eliminate an additional 15,000 roles to reach its target.
These cuts, expected to continue through 2026, will be achieved through:
- Consolidating business functions
- Eliminating stranded costs from previously closed divisions
- Exiting marginal businesses, such as municipal bonds and distressed debt trading
- Streamlining operations through automation and efficiency improvements
Fraser highlighted that Citi has already retired 6% of its legacy platform base and automated 90% of price verification for priority fixed income and equities securities.
These steps indicate that automation will play a significant role in further job reductions.
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Financial Performance and Leadership Compensation:
The layoffs at Citi come at a challenging time for the bank.
Despite early indications that Citi’s job cuts were mainly focused on removing bureaucracy, its financial performance in Q4 was disappointing.
The bank reported a $1.8 billion net loss for the fourth quarter of 2023, its worst quarterly performance in 15 years.
Revenue fell by 3% to $17.4 billion compared to the previous year.
These financial strains have prompted the need for significant cost-saving measures, including the planned layoffs.
In light of the restructuring efforts and financial challenges, CEO Jane Fraser’s compensation has been a topic of discussion.
In 2024, Fraser’s pay increased by 33% to $34.5 million, recognizing her leadership during the bank’s transformation.
This compensation package includes a $1.5 million salary, a $4.95 million cash incentive, and $28 million in deferred shares and long-term incentive awards.
Over her tenure since 2021, Fraser has earned over $100 million, reflecting her pivotal role in steering the bank through complex restructuring and aiming to enhance profitability.
Changes in Diversity Initiatives:
Amid the restructuring, Citigroup has also announced changes to its diversity, equity, and inclusion (DEI) initiatives.
The bank has decided to scale back certain diversity programs due to increasing political pressure.
CEO Jane Fraser informed staff that the DEI team would be renamed to “talent management and engagement,” and the bank will eliminate aspirational representation goals, except where required by law.
Additionally, mandates for diverse candidate slates and interview panels will no longer be enforced.
This move aligns with similar actions taken by other major corporations in response to the evolving political and social landscape.
Revenue Growth and Future Outlook:
While Citi group cuts 20,000 jobs, it simultaneously aims to boost revenues by 4-5% annually.
In 2023, Citi’s overall revenue grew by 4%, thanks to strong performances in transaction services and the U.S. personal banking sector.
However, the bank’s markets division saw a 7% decline, and its investment banking revenue fell by 15%, raising concerns about Citi’s broader financial health.
Despite the ongoing Citibank layoffs, Citi remains committed to restructuring for future success.
Whether these drastic measures will lead to sustained profitability or further challenges remains to be seen.
As more Citi layoff news unfolds, employees and investors alike will be watching closely.
Impact on Employees and Work Culture:
With Citi group cuts 20,000 jobs, many employees are left uncertain about their future.
While the bank is focusing on automation and efficiency, concerns are growing about job security, especially among mid-level employees.
Some insiders have suggested that remote workers may be disproportionately affected, as Citigroup evaluates the long-term sustainability of work-from-home policies.
Employees in corporate roles, risk management, and technology teams could see significant changes in how they work, with more emphasis on in-office collaboration.
Industry Reactions and Market Impact:
The announcement of Citi layoffs has also raised concerns across the banking industry.
Market analysts are closely watching whether other major financial institutions will follow suit.
Some experts believe that Citi’s restructuring strategy, while aggressive, could set a precedent for other banks looking to streamline operations amid economic uncertainties.
Additionally, Citi’s stock has experienced fluctuations since the layoff news, with investors reacting cautiously to the bank’s cost-cutting measures.
Citi’s Global Footprint and Future Plans:
Citi’s job cuts are not limited to one region.
The layoffs will impact employees across North America, Europe, and Asia, as the bank continues to restructure its global operations.
The company is also planning to exit certain business areas, such as municipal bonds and distressed debt trading, which could lead to further headcount reductions.
However, Citi has reassured investors that it remains committed to expanding its wealth management and investment banking services in key markets.
Regulatory and Political Considerations:
Citi’s layoffs come at a time when financial institutions are facing increasing scrutiny from regulators.
Lawmakers and labor unions have raised concerns about mass job cuts in the banking sector, particularly as Citi continues to report executive compensation increases.
Some political leaders have also questioned whether Citi’s decision to cut jobs while investing heavily in technology and automation aligns with its long-term commitments to employees and the economy.
What’s Next for Citi Employees?
As the restructuring continues, Citi employees are bracing for further changes. Inter
nal reports suggest that the bank is offering severance packages and career transition support to affected employees.
However, uncertainty remains about which roles will be impacted next.
Citi has assured that it will continue to invest in critical areas such as cybersecurity, compliance, and customer-facing roles, which could create opportunities for redeployment within the organization.
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