Citigroup, a US-based investment bank and financial services company, will be laying off 2,000 employees over the next two years. One of the reasons for the job cuts is the company’s loss of $1.8 billion in the fourth quarter of 2023.
“Citigroup’s fourth quarter of 2023 was clearly disappointing,” said CEO Jane Fraser to analysts, as quoted by Reuters on Sunday, January 14, 2024. She also mentioned that 2024 is expected to be a year still overshadowed by global uncertainties, including layoffs and a major company reorganization.
Despite this, analysts believe that Citigroup’s performance is still strong if it meets its fourth-quarter targets. “Citigroup’s revenue looks bad with a significant loss of $1.8 billion. However, the bank’s core business shows resilience,” explained Opimas Management Consultant CEO Octavio Marenzi.
As known, Citi’s business loss was caused by various expenses such as $3.8 billion for reorganization costs, currency devaluation reserves, and the unstable conditions in Argentina and Russia. Citi also had to pay $1.7 billion for topping up government deposit insurance funds.
This is not the first time Citigroup has experienced layoffs. Earlier in March, Citigroup cut less than 1 percent of its 240,000 workforce. Employees from across the company’s operations, technology organization, and US mortgage underwriting unit were also affected.
Citigroup’s layoffs come just weeks after their competitor, JPMorgan Chase, laid off hundreds of mortgage staff. Meanwhile, Goldman Sachs also plans to lay off thousands of positions throughout the company.
In terms of technology division, Citigroup has spent billions in recent years to enhance its infrastructure. In June 2023, the company cut 30 investment banking jobs and 20 other corporate banking jobs in London.
In an internal memo released by Citigroup, the layoffs are part of their efforts to reduce operational costs amidst the threat of a business decline. Additionally, Citigroup has disbanded its global team providing foreign exchange market analysis by terminating employees in London and New York, as well as its Latin American corporate bond trading team.