Facing a hefty $1.8 billion loss in the fourth quarter and a disappointing year overall, Citigroup is embarking on a major restructuring plan.
This includes a significant workforce reduction of 20,000 employees over the next two years, representing roughly 8% of its current global staff.
The decision comes after a dismal Q4 performance that saw the bank miss analyst expectations by a wide margin.
One-off costs, including a regional banking crisis charge and hefty restructuring expenses, significantly impacted the bottom line, reports state.
Chief Executive Officer (CEO), Jane Fraser, however, remains optimistic about the future, calling 2024 a “pivotal year” for the bank.
The layoffs and planned IPO of its Mexican retail unit, which will shed another 40,000 employees, are part of a broader strategy to streamline operations and boost profitability.
Ultimately, Citigroup aims to shrink its workforce from 240,000 to around 180,000.
The financial sector isn’t alone in feeling the pinch. Other companies, from animation giant Pixar to audiobook giant Audible, are also resorting to layoffs to weather economic headwinds. Even popular gaming platform Discord isn’t immune, having announced a 17% workforce reduction.