Citigroup cuts 20,000 jobs after $2.7b loss in Q4
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The news: Citigroup has announced it will cut 20,000 jobs in the next 24 months after posting its worst quarter in 14 years.
The numbers: The bank reported a loss of USD1.8 billion ($2.7 billion) for the fourth quarter last year, with quarterly revenue falling 3% to USD17.4 billion.
The context: The cuts aim to reduce the bank’s workforce by approximately 10% and could cost the firm up to USD1.8 billion in severance related expenses, but save the bank up to USD2.5 billion per year by their expected completion in 2026.
The bank announced its plans for a sweeping re-organisation in September 2023, restructuring the business into five key divisions whose heads will report directly to CEO Jane Fraser. Reports of the 10% workforce followed in early November last year.
What they said: “While the fourth quarter was very disappointing due to the impact of notable items, we made substantial progress simplifying Citi and executing our strategy in 2023. We restructured around five core, interconnected businesses to align our organization with our strategy and to provide greater transparency into their performance,” said Citi CEO Jane Fraser.
The source: Citigroup Q4 Results
