Citigroup is laying off 286 workers in New York, as shown in recent filings with the State Department of Labor. Three separate notices issued earlier this week indicate that the layoffs will impact 239 employees from its primary banking subsidiary, 44 from its broker-dealer unit, and three from its technology arm. Recent filings with the State Department of Labor disclose that Citigroup plans to lay off 286 employees in New York.
Reuters reports that the filings, dated earlier this week, reveal that the job cuts will affect 239 employees from its primary banking subsidiary, 44 from its broker-dealer unit, and three from its technology arm. The decision to cut jobs aligns with Citigroup’s broader plan, announced in January, to eliminate 20,000 jobs over the next two years.
Citigroup Plans Restructuring to Offset Losses
Citigroup, facing a tough quarter with a $1.8 billion loss due to unexpected charges, is looking to streamline its operations.
According to Chief Financial Officer Mark Mason, the bank aims to cut its global workforce by about 8% by 2026.
CEO Jane Fraser announced the comprehensive reorganization plan in September. The strategy involves simplifying Citigroup’s structure, concentrating on profitable sectors, and selling off non-core markets.
Citigroup Announces Reorganization Plan
In September, Citigroup’s CEO, Jane Fraser, revealed a comprehensive reorganization plan. The strategy involves simplifying the bank’s structure, concentrating on profitable areas, and selling off non-core markets.
The recent layoffs in New York are a key part of this broader initiative. They highlight the bank’s commitment to adapting to the changing financial landscape and improving operational efficiency. While the filings detail the impact on employees from different units, the specific roles and positions affected are not disclosed.
Chief Financial Officer Mark Mason told reporters that the bank aims to reduce its global workforce by around 8% through 2026, including layoffs resulting from the reorganization.
CEO Jane Fraser’s announcement of the sweeping reorganization plan aims to simplify Citigroup’s structure after divesting from non-core markets and focusing on profitable areas.
Quarterly Earnings Update from Wall Street
During the latest quarterly earnings season on Wall Street, Citi reported a $1.8 billion loss for the fourth quarter. This loss stemmed from various one-off charges and expenses totaling $3.8 billion, related to its restructuring, withdrawal from Russia, and exposure to Argentina. Fraser commented, “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.”
Shares in Citi, the third largest bank in the US with a $100 billion market valuation, rose by 0.4% during early trading in New York. The bank is currently focused on boosting profits, reducing bureaucracy, and increasing its stock price.
Meanwhile, JPMorgan Chase, America’s third biggest bank, reported its best-ever annual profit despite a charge in the last quarter to replenish a US government deposit insurance fund following the failure of several regional lenders, including Silicon Valley Bank, last year.
JPMorgan’s profits dropped by 15% in the fourth quarter to $9.31 billion. However, its earnings surged by 32% over the year to $49.6 billion. The bank has benefited from higher interest rates and its acquisition of First Republic, one of the regional banks that failed last year.
JPMorgan’s Outlook and Market Response
JPMorgan raised analysts’ expectations for net interest income, projecting it to reach $90 billion this year. Jamie Dimon, chairman and chief executive of JPMorgan, noted the resilience of the US economy, with consumers still spending and expectations of a soft landing for inflation.
However, Dimon also highlighted several downside risks, emphasizing the need to be prepared for any environment based on lessons from the past year.
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