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Citigroup is preparing to eliminate approximately 1,000 jobs this week as part of CEO Jane Fraser’s ongoing transformation plan to reduce costs, streamline operations, and improve efficiency.
This latest round is a continuation of the multiyear restructuring announced earlier, which aims to cut a total of 20,000 roles—about 8% of the global workforce—by the end of 2026.
With current headcount around 226,000–227,000 employees, the bank has already reduced more than 10,000 positions through previous layoffs, business exits, and natural attrition.Fraser’s internal messaging has been direct, emphasizing a shift to a high-performance, results-oriented culture and warning that outdated habits will no longer be tolerated.
The bank has made significant progress on regulatory remediation, with most programs nearing completion, which is expected to lead to further staff reductions in compliance and related areas. Automation, artificial intelligence, and process simplification are also playing a major role in reshaping and eliminating certain jobs, with CFO guidance indicating continued headcount declines throughout 2026 and beyond.
The overall goal is to achieve $2–2.5 billion in annual cost savings by simplifying management layers, focusing on high-growth businesses, and exiting non-core markets.
Citibank’s Business Model: Global Reach Meets Focused Efficiency
Citigroup operates as a diversified multinational bank with five core business segments: Services, Markets, Banking, Wealth, and U.S. Personal Banking.
The model leverages its vast international network to serve corporations, institutions, governments, and high-net-worth individuals, while maintaining a strong consumer banking presence in the United States.
- Services – Provides treasury, trade finance, and payment solutions for global corporations and institutions.
- Markets – Offers trading, securities services, and capital markets products to institutional clients worldwide.
- Banking – Delivers investment banking, corporate lending, and commercial banking, including M&A advisory and debt/equity underwriting.
- Wealth – Focuses on wealth management and advisory services for affluent clients globally.
- U.S. Personal Banking – Offers credit cards, mortgages, deposits, and personal loans, with the U.S. remaining the most profitable region due to high-margin card operations.
Revenue is generated from interest income, trading profits, investment banking fees, wealth advisory fees, and consumer banking products.
Recent strategic moves, including the sale of several international consumer banking businesses, aim to create a leaner, more digital-first organization.
How the Job Cuts Are Progressing: Timeline and Outlook
The restructuring, often referred to internally as the “Transformation,” began in earnest in 2024. Key milestones include:
- 2024–2025 – Over 10,000 roles eliminated through management layer reductions, divestitures, and attrition.
- January 2026 – Approximately 1,000 jobs cut this week, targeting alignment with evolving business needs and technology gains.
- Full Year 2026 – Several thousand additional reductions planned to meet the 20,000 total target, with headcount expected to fall to around 180,000 by year-end.
- Beyond 2026 – Ongoing efficiency improvements through AI, automation, and cultural change, with no fixed end date for workforce adjustments.
These changes are designed to enhance profitability and return on tangible common equity, though they come with challenges for employees and potential risks to service continuity.
The overhaul reflects a broader industry trend toward leaner operations and greater reliance on technology in banking.Stay tuned as Citigroup continues its push to become a more disciplined and competitive global player.
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