Stay in the loop! Subscribe to our newsletter and gain access to exclusive insights, trends, and news from the world of business and leadership. Don’t miss out!
Citigroup (C.N) revealed plans to cut 20,000 jobs over the next two years in response to a “clearly disappointing” quarter marked by one-off charges that resulted in a $1.8 billion loss. Despite the setback, bank shares rose over 1%.
CEO Jane Fraser acknowledged the disappointment, stating, “The fourth quarter was very clearly disappointing. We know that 2024 is critical.” The bank, amid a multi-year effort to streamline operations, increase profitability, and elevate its stock performance, focuses on a strategic realignment.
Citigroup plans to reduce its global workforce of 239,000 by 20,000, approximately 8% of staff, through 2026. This initiative is part of a broader global restructuring effort to enhance efficiency and responsiveness.
CFO Mark Mason emphasized that the bank is committed to reaching a staffing level of 180,000 employees.
As part of the restructuring, Citigroup will not include 40,000 jobs when it spins off its Mexican consumer unit Banamex in an eventual IPO.
The ultimate plan is to streamline operations and achieve greater operational efficiency.
Despite the reported $1.8 billion loss driven by one-off charges, some analysts highlighted the underlying business resilience when excluding these charges.
Octavio Marenzi, CEO at Opimas, commented, “Citigroup’s earnings looked awful with a big loss of $1.8 billion, but the bank’s underlying business showed resilience.”
The $1.8 billion loss was influenced by $3.8 billion in charges, including reorganization expenses, a reserve related to currency devaluations and instability in Argentina and Russia, and a $1.7 billion payment to replenish a government deposit insurance fund.
Citigroup anticipates reporting $700 million and $1 billion in charges this year related to severance costs and the ongoing reorganization.
According to CEO Jane Fraser, the bank plans to announce additional organizational changes during the week of Jan. 22, with efforts to simplify its structure largely completed in the current quarter, saving $1 billion and eliminating around 5,000 mainly managerial roles.
Championing Excellence and Female Leadership in Engineering Sheeba Benny, a trailblazer in the field of electrical
How a 21-Year-Old Turned a Conservatory Start-Up into a $650,000 Business At just 21 years old,
With the global speaking industry valued at over $2 billion and growing rapidly, companies and event
In the world of technology-driven transformation, few leaders stand out as much as Senthil Babu, CEO
How DDSports and DeLuca Designs Business Academy are Revolutionizing Markets and Inspiring a New Generation of
