Citigroup is expected to announce a fresh round of lay off in March this year, shortly after the American bank decided to slash around 1,000 jobs in January, according to news agency Reuters.
The new wave of job cuts is expected to be carried out after bonuses are paid, the sources told the agency, although they did not specify the scale or location of the previously unreported plans.
This development comes as Citi CEO Jane Fraser continues to work on her sweeping turnaround plan, which is designed to cut costs, fix regulatory problems and boost profits to help the bank catch up with rivals.
Who are likely to be impacted?
The March layoffs are likely to mainly impact managing directors and senior employees across different parts of the bank, according to one of the sources. Some senior managers have already been moved to other divisions to keep their roles before the staff cuts begin, the agency report noted.
The latest round of layoff which happened this month also affected several senior employees, the second source told Reuters.
Bank to continue the wave of job cuts
Citigroup said in a statement earlier this month that the bank will continue to reduce staff headcount in 2026. “These changes reflect adjustments we’re making to ensure our staffing levels, locations and expertise align with current business needs; efficiencies we have gained through technology; and progress against our Transformation work, which is nearing target state,” it said.
Chief Financial Officer Mark Mason also revealed during the latest earnings call on 14 January that Citi's workforce reduced from 240,000 in 2022 to 226,000 employees by the end of last year.
“We have been reducing headcount and expect that trend to continue as we take a step back and look at the trajectory of our expense base,” Mason told analysts in a separate earnings call, highlighting the $800 million expense related to severance last year.
CEO Jane Fraser's strategy
The fresh rounds of layoffs, along with another reorganization announced in November, are all parts of Fraser's turnaround strategy. Fraser, who became the CEO in 2021, received a one-time $25 million equity award for progress on her turnaround plan and was elected as chair of the board in October.
In 2023 and 2024 the company publicly announced major layoffs as it was reducing management layers and selling assets, but the latest headcount reductions are being done more discreetly, as per the agency report.
The layoffs come as the bank is getting some relief from regulators. The US Federal Reserve has closed notices that directed the bank to fix its trading risk management weaknesses, while the Office of the Comptroller of the Currency rolled back a 2024 amendment to a 2020 regulatory punishment known as a consent order.