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Citigroup is cutting certain roles as part of a broader corporate restructuring to eliminate tens of thousands of jobs by 2026.
According to a new report from Bloomberg, Citigroup laid off several managing directors in its Wealth at Work unit this week, which offers services to clients at professional services firms.
The bank also let go of a team that focuses on obtaining data and analyses for its clients.
Related: Citigroup Slashes 20,000 Jobs: Restructuring or Retreat?
Citigroup’s layoffs arrive as the bank tries to reduce expenses. Citigroup’s CEO Jane Fraser stated in January 2024 that the bank plans to eliminate 20,000 jobs by 2026 to save $2.5 billion.
Jane Fraser. Photo by Win McNamee/Getty Images
The bank ended 2023 with a workforce of 240,000 people. It cut 7,000 roles within the first quarter of 2024 and ended 2024 with 229,000 employees for a reduction of about 10,000 roles within a year, per Bloomberg.
“We went through a significant simplification of our organization, removing management layers and the regional construct,” Fraser stated in an earnings call on Wednesday. “This has accelerated decision-making and made us a better partner to our clients.”
Related: While Other Bank CEOs Take Pay Cuts, Citigroup’s CEO Jane Fraser Gets a Raise
Citigroup’s chief financial officer Mark Mason said earlier this week that the bank is going to double what it usually sets aside for severance payments this year. Severance costs are usually around $300 million for the bank, he stated but will be $600 million in 2025.
In 2024, severance costs for Citigroup were even higher, close to $700 million.
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