Jane Fraser, Citi, at WEF, Davos, Jan. 17, 2023.
Adam Galica | CNBC
Citigroup said it was cutting 10% of its workforce in a bid to help boost the embattled bank’s results and stock price.
About 20,000 employees will be let go over the “medium term,” New York-based Citigroup said Friday in a slideshow tied to fourth-quarter earnings. While it wasn’t immediately clear how long that is, the bank has previously used that term to denote a three-to-five-year period.
Citigroup had roughly 200,000 workers at the end of 2023, excluding Mexican operations that are in the process of being spun out, according to the presentation.
Citigroup CEO Jane Fraser announced a sweeping overhaul of the third-largest U.S. bank by assets in September. The company has been left behind by peers since the 2008 financial crisis as Fraser’s predecessors couldn’t get a handle on expenses, and is the lowest-valued among the six biggest U.S. banks.
In November, CNBC reported that managers and consultants involved in the effort — known internally by the code name “Project Bora Bora” — discussed job cuts of 10% in several major businesses.
The company has since executed several waves of layoffs, beginning with the top layers of the bank first, with another round of cuts set for January 22, according to a source.
In a footnote to its presentation, Citigroup said the 20,000 job cuts could be “slightly lower” if it chooses to use internal resources rather than outsource functions.
This story is developing. Please check back for updates.
