Citigroup is set to implement a significant reduction in its workforce, aiming to eliminate approximately 20,000 jobs over the coming three years. This move is a strategic element of its previously announced restructuring plan. The decision, outlined in Citi's latest earnings report, is expected to potentially save the company up to $2.5 billion.
The bank acknowledged a notably underwhelming performance in the fourth quarter of 2023, partly attributing this to roughly $780 million in restructuring expenses. These charges are directly linked to the steps taken as part of Citigroup's initiative to streamline its organizational structure.
Announced initially in September, Citigroup's restructuring involves an overhaul of its corporate framework, including the reduction of management layers. This reorganization, internally referred to as "Project Bora Bora," had been anticipated to lead to significant workforce reductions. Reports from CNBC indicate internal discussions about potential job cuts impacting at least 10% of the workforce across several of Citigroup's key divisions. The implementation of these job reductions commenced in November, as reported by CNBC.
The planned job cuts over the next few years are expected to bring Citigroup's total headcount to around 180,000, excluding the personnel from its Mexico operations, which are in the process of being divested.
CEO Jane Fraser, in a recent press release, highlighted the substantial strides made by Citigroup in simplifying its operations in 2023. Fraser pointed to 2024 as a pivotal year, where the focus will shift entirely to optimizing the performance of the company's five core business segments and advancing its transformational objectives.
Citigroup is not alone in executing workforce reductions in 2024. Other major corporations like Google and Amazon are also proceeding with layoffs. Google has announced the termination of hundreds of positions, while Amazon is reducing its workforce, particularly in the Amazon Prime Video and Amazon MGM Studios divisions.
