PriyaPatelTLDR:
Citigroup, one of the largest banks in the US, has announced plans to cut 20,000 jobs by the end of 2026 in a bid to restructure and increase profitability. The cuts come after the bank reported a steep loss of $1.8bn in the fourth quarter of 2023 due to one-off charges and expenses related to restructuring, retreat from Russia, and exposure to Argentina. The bank’s CEO, Jane Fraser, called 2024 a “turning point” for the company, while the CFO, Mark Mason, acknowledged that the job cuts would be tough on morale. Citi currently has 239,000 employees worldwide, and expects the workforce to shrink to about 180,000. The bank’s Mexican consumer division, Banamex, is also set to reduce its staffing levels by about 40,000.
Citigroup has announced plans to cut 20,000 jobs by the end of 2026 as part of a sweeping restructuring effort. The bank reported a loss of $1.8bn in the fourth quarter of 2023, largely due to one-off charges and expenses related to its restructuring, retreat from Russia, and exposure to Argentina. Citigroup CEO, Jane Fraser, called 2024 a “turning point” for the company, while CFO, Mark Mason, acknowledged that the job cuts would be tough on morale.
The bank currently has 239,000 employees worldwide and expects the workforce to shrink to about 180,000. This reduction is due in part to the upcoming listing of Banamex, Citigroup’s Mexican consumer division, which is set to reduce staffing levels by about 40,000.
Citigroup aims to boost profitability, reduce bureaucracy, and increase its stock price with these job cuts. The bank is in the midst of a drive to simplify its operations and execute its strategy. Shares in Citigroup were 0.4% higher during early trading in New York. The bank has a market valuation of $100bn.
JPMorgan Chase, America’s third largest bank, also reported its fourth quarter earnings, posting a record annual profit. Despite a charge in the last quarter to top up a US government deposit insurance fund, JPMorgan’s profits for the year surged 32% to $49.6bn. The bank has benefited from higher interest rates and its acquisition of First Republic.
JPMorgan projected that its net interest income, the measure of the gap between what it makes on loans and pays out on deposits, would hit $90bn this year. CEO Jamie Dimon said that the US economy remains resilient, with consumers still spending, but cautioned that there were a number of downside risks and the need to be prepared for any environment.
