Citigroup has announced plans to lay off 430 employees across various divisions in New York, as revealed in filings submitted to the State Department of Labor on Monday.
According to the disclosed information, the majority of the layoffs are expected to impact Citigroup's primary banking unit, Citibank. This will affect 363 individuals from the unit, as reported by Reuters.
Citigroup's Major Restructuring Effort
Workers in the technology and broker-dealer arm are also slated to be affected by the downsizing initiative.
This decision comes in the wake of the bank's recent conclusion of a significant overhaul, marking its largest restructuring endeavor in decades.
Launched in September, this reorganization aimed to streamline Citigroup's structure by reducing management layers from thirteen to eight, as part of a broader strategy to alleviate bureaucratic complexities.
Citigroup announced in January plans to reduce its workforce by 10% to improve the bank's performance and stock price.
The company has set an ambitious goal to trim its global workforce by 20,000 over the next two years as part of its commitment to operational efficiency and cost optimization, as reported by Bloomberg.
At the end of 2023, Citigroup had approximately 200,000 workers, excluding its Mexican operations, which are undergoing a spin-out process, CNBC reported.
Restructuring Efforts Said to Generate Annual Savings of $1B
According to filings, the layoffs are scheduled to take effect in June, signaling an impending transition period for the affected employees.
Earlier announcements by Citigroup's CEO, Jane Fraser, revealed that the bank had already eliminated 1,500 managerial roles globally, constituting 13% of its leadership positions.
Fraser emphasized that these restructuring efforts are anticipated to generate annual savings of approximately $1 billion.
The decision to downsize aligns with Citigroup's broader objectives to enhance profitability and bolster its stock performance, which has trailed behind its competitors in recent times.
Despite the challenges posed by the layoffs, Citigroup's stock performance has demonstrated resilience.
Among the banks listed on the S&P 500 Index, only Citigroup, along with Wells Fargo and JPMorgan, surpassed the index's performance.
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