Citi plans to cut about 20,000 jobs as part of global overhaul | CPT PPP Coverage

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Citi has said it is planning to cut about 20,000 jobs over the next two to three years as the bank takes further drastic steps to overhaul the global business.

Chief executive Jane Fraser said the company had a “very disappointing” fourth quarter after plunging to a net loss of 1.8 billion US dollars (£1.4 billion).

It wants to reduce the size of its 239,000 global workforce as part of efforts to simplify the business and reduce costs.

Excluding about 40,000 staff in Mexico, where the bank operates as a spin-off, it is aiming for a net headcount reduction of 20,000 in the “medium term” – between 2025 and 2026 – leaving it with about 180,000 staff.

It did not reveal which regions are set to be affected.

The firm said it expects to incur between 700 million dollars (£547.1 million) and one billion dollars (£780 million) in severance and restructuring costs this year.

In October, UK chief executive James Bardrick said about 250 roles were being reviewed in London’s Canary Wharf, where Citi’s UK office is based.

Citi tumbled to a hefty quarterly loss after generating a net income of 2.5 billion US dollars in the fourth quarter of 2022.

It incurred one-off expenses resulting from the firm’s organisational restructuring, and costs related to winding down its operations in Russia and from the devaluation of the Argentine peso.

It also took an approximately 1.7 billion dollar (£1.33 billion) charge related to a “special assessment” by the Federal Deposit Insurance Corporation (FDIC), which others in the industry faced as a result of the failures of regional banks including Silicon Valley Bank in 2023.

Citi’s boss Ms Fraser said: “While the fourth quarter was very disappointing due to the impact of notable items, we made substantial progress simplifying Citi and executing our strategy in 2023.

“Given how far we are down the path of our simplification and divestures, 2024 will be a turning point as we’ll be able to completely focus on the performance of our five businesses and our transformation.”