Mass Layoffs Ahead: Citigroup to Slash 20,000 US Jobs
Citigroup plans to slash 20,000 jobs in the US within two years, following a dire Q4 2023 with a net loss of $18 billion – the worst in 15 years
Citigroup's CFO Mark Mason announced on Friday that the company plans to cut 20,000 jobs over the next two years. This decision follows the report of a $1.8 billion net loss for the fourth quarter of 2023, making it the company's worst quarter in 15 years. The bank's earnings loss of $1.16 per share for the fourth quarter was significantly lower than the estimated loss of 11 cents per share, as reported by FactSet.
Citi reported that its results were impacted by a number of one-time costs, such as a $1.7 billion charge related to the regional banking crisis, an $880 million loss in Argentina, and $800 million in restructuring costs. These layoffs are a part of Citi CEO Jane Fraser's ongoing efforts to streamline the company and improve profits. Fraser referred to 2024 as a "turning point year" for the country's third-largest lender during a call on Friday morning.
The cleanup of the aftermath of Silicon Valley Bank and Signature Bank's collapses last spring amounted to approximately $23 billion for the Federal Deposit Insurance Corporation. The majority of this cost was borne by the large banks.
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The bank has also announced its intention to reduce its workforce by 40,000 employees from its Mexican retail unit through an IPO, resulting in a total company headcount of 180,000, down from 240,000. Additionally, the bank has projected up to $1 billion in severance pay and reorganization costs over the next few years as part of its restructuring plan.
Shares of Citi were down 0.8% in late-morning trading.
This story is developing and will be updated.
