Citigroup is preparing to cut around 1,000 jobs as part of a continuing effort to reduce expenses and reshape how the bank functions. The move is happening during a sensitive period for financial markets, as major Wall Street firms approach their earnings announcements and investors closely examine spending levels. Although similar layoffs are being seen across the financial sector, Citigroup’s decision stands out because of its size and its connection to a longer restructuring plan already underway.
According to information reported by Reuters, the job cuts are expected to take place this week. Citigroup has not publicly confirmed the exact number of roles affected, but it has acknowledged that its overall headcount will continue to decline into 2026. The bank’s leadership has made cost discipline a central focus, especially after years of heavy spending on systems, controls, and internal improvements.
Why Citigroup Is Cutting Jobs During Earnings Season
The timing of Citigroup’s job cuts is closely tied to how Wall Street evaluates large banks. As earnings season begins, investors tend to focus less on revenue growth and more on whether companies are managing their expenses carefully. Over the past few years, banks like Citigroup have invested heavily in technology, compliance, and risk controls. While these upgrades were necessary, they also increased operating costs.
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Citigroup’s restructuring strategy has been shaped under the leadership of CEO Jane Fraser, who has been working to simplify the bank’s structure and improve returns. The goal is to make Citigroup more efficient and easier to manage, particularly in areas such as data governance and risk management. These efforts have required changes across departments, including staffing adjustments.
A spokesperson for Citigroup told Human Resources Online that the bank is making changes to staffing levels and office locations to reflect efficiencies gained through technology. In simple terms, this means that new digital tools and automated systems are reducing the need for certain roles. The spokesperson also said the company is grateful for the contributions made by employees affected by the changes.
At the end of 2024, Citigroup reported having about 229,000 full-time employees worldwide, based on its latest annual filing. Two years ago, the bank set a target to reduce its workforce by around 20,000 roles by the end of 2026. The latest round of job cuts fits into that broader plan and shows that the restructuring process is still ongoing.
Inside Citi’s Ongoing Restructuring Plan
Citigroup’s restructuring extends beyond job reductions and includes changes to how the bank operates. The company has been working to simplify its structure and strengthen oversight, with a strong focus on improving how data is managed and verified. These steps are aimed at reducing risk and addressing areas that have previously drawn regulatory attention.
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Several business units have already been affected by these changes. Wealth management and technology divisions have seen roles redefined or eliminated, leading to staff departures. The bank has also made leadership adjustments, naming Gonzalo Luchetti as chief financial officer in place of Mark Mason, as part of efforts to align management with its restructuring goals.
Citigroup runs about 650 branches across the United States, mostly in six large metro areas. Although branch operations have not been directly tied to the latest job cuts, the shift toward digital banking has reduced the need for large in-branch teams. The restructuring has been carried out gradually over several years, allowing the bank to meet regulatory requirements while managing costs in a steady manner.
Market Reaction and Immediate Impact
The announcement of the job cuts had an immediate impact on Citigroup’s stock price. In late New York trading, Citi shares fell by about 1.2%. The market reaction showed that investors are highly sensitive to cost-cutting moves, especially when they are announced close to earnings reports, as layoffs are often seen as a response to financial pressure.
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While reducing staff can lower expenses over time, it also creates short-term costs. Severance payments, operational disruption, and the departure of experienced employees can affect daily functioning. For a global bank like Citigroup, such risks are closely monitored by regulators, who expect strong internal controls and stable systems at all times.
Citigroup has described the latest job cuts as routine adjustments rather than a change in strategy. The bank said the layoffs are part of its long-term effort to improve efficiency and performance. As earnings reports are released, investors and analysts are expected to closely examine how these staffing changes affect the bank’s costs and operations.
