Citigroup has commenced a significant workforce reduction, aiming to cut 20,000 jobs by 2026 as part of a strategic overhaul to streamline operations and reduce expenses. This initiative has recently impacted hundreds of employees across its New York and Florida offices.
In New York, the bank has filed four separate Worker Adjustment and Retraining Notification (WARN) notices with the State Department of Labor, indicating the termination of 430 positions across multiple departments due to “economic” reasons. These layoffs are scheduled to take effect on June 29, affecting a workforce that previously numbered approximately 13,270 employees in the state.
Simultaneously, Citigroup’s Tampa, Florida campus has experienced substantial layoffs, though the exact number of affected employees has not been disclosed. The Tampa Bay Business Journal reports that the campus, which employs around 8,400 individuals, has seen a significant reduction in staff.
CEO Jane Fraser has stated that the restructuring efforts involve reassigning some employees to new roles or teams, while others will depart from the company entirely.
In addition to workforce reductions, Citigroup is implementing changes to its promotion and compensation structures. The bank plans to significantly decrease the number of year-end promotions and pay increases. This move aims to further control costs and streamline operations.
Despite these internal challenges, Citigroup remains focused on its strategic goals. The bank is undergoing a comprehensive reorganization, including changes in technology leadership and restructuring within its services unit, to adapt to rapid technological advancements and enhance revenue growth.
These measures reflect Citigroup’s commitment to transforming its operations amidst a dynamic economic environment, aiming to position itself more competitively in the global banking sector.