Citigroup is pressing forward with its aggressive restructuring plan, cutting thousands of jobs to reduce expenses. The financial giant laid off several managing directors in its Wealth at Work unit this week, along with an entire team focused on client data and analysis, according to Bloomberg.
The company is now more than halfway to its goal. These cuts are part of Citigroup’s broader strategy to eliminate 20,000 positions by 2026, a move expected to save $2.5 billion. The bank, which had 240,000 employees at the end of 2023, has already shed 10,000 jobs in 2024, reducing its workforce to 229,000.
“We went through a significant simplification of our organization, removing management layers and the regional construct,” CEO Jane Fraser said during an earnings call on Wednesday. “This has accelerated decision-making and made us a better partner to our clients.”
As the layoffs continue, Citigroup is also increasing severance costs. Chief Financial Officer Mark Mason revealed that the bank will double its usual severance budget in 2025, setting aside $600 million instead of the typical $300 million. In 2024, severance expenses were even higher, nearing $700 million.
The restructuring effort comes as Citigroup aims to streamline operations and improve efficiency amid broader industry shifts. The bank’s latest job reductions highlight its commitment to long-term cost-cutting while ensuring it remains competitive.
Fraser’s leadership has faced scrutiny, especially as other bank CEOs take pay cuts. However, Citigroup remains focused on its overhaul, signaling more changes ahead as it moves toward its 2026 targets.