Citigroup is preparing for another round of job cuts in March, extending a workforce reduction drive that has already seen about 1,000 roles eliminated earlier this month, two sources familiar with the matter told news agency Reuters. The planned layoffs are expected to be announced reportedly after annual bonuses are paid.
According to the report, the layoffs are part of the bank’s ongoing effort to streamline operations, rein in costs and reshape its business under a multi-year turnaround strategy. The scale and locations of the previously unreported plans were not disclosed.
According to Reuters’ source, the March layoffs are expected to affect managing directors and other senior employees across multiple business lines. Some senior managers have already been reassigned to different divisions in an effort to secure roles ahead of the headcount reduction, the source told Reuters.
Broad restructuring under CEO Fraser
The job cuts announced earlier this month also impacted a significant number of senior staff, another source added. The latest workforce reductions come as Citigroup continues a broad restructuring under Chief Executive Officer Jane Fraser. The shake-up is aimed at cutting costs, resolving long-standing regulatory issues and improving profitability to close the gap with key rivals.
In a statement, Citigroup said it plans to continue reducing its workforce in 2026 as part of its ongoing transformation. “These changes reflect adjustments we’re making to ensure our staffing levels, locations and expertise align with current business needs; efficiencies we have gained through technology; and progress against our Transformation work, which is nearing target state,” the bank said.
While Citigroup publicly announced large-scale layoffs in 2023 and 2024 as it cut management layers and sold non-core assets, the latest reductions are being implemented more discreetly, Reuters reported.
$800 million in severance expenses last year
Citigroup Chief Financial Officer Mark Mason said during a recent earnings call that the bank’s global workforce had declined to 226,000 employees by the end of last year, down from about 240,000 in 2022.
Mason noted that the bank incurred roughly $800 million in severance-related expenses last year and indicated that further reductions are likely. “We have been reducing headcount and expect that trend to continue as we take a step back and look at the trajectory of our expense base,” he told analysts.
The upcoming layoffs and a reorganisation announced in November represent the next phase of Fraser’s strategy. Fraser, who became CEO in 2021, received a one-time equity award valued at $25 million for progress on the turnaround and was elected chair of the board in October.