Citi to lay off 430 employees in New York across units

 (Reuters) -Citigroup will lay off 430 employees across different divisions in New York, the bank disclosed in filings with the State Department of Labor on Monday.

The layoffs will impact 363 employees of the lender's primary banking unit, Citibank. Workers in the technology and broker-dealer arm will also be affected, the filings showed.

The bank last week ended a sweeping overhaul, its biggest in decades, as part of an effort to simplify its structure and improve performance.

Unveiled in September, the reorganization reduced management layers to eight from 13 as part of an effort to cut bureaucracy. Citi has also set a goal to trim its global workforce by 20,000 over the next two years.

The lender did not immediately respond to a request for additional comment. The latest layoffs are scheduled for June, according to the filings.

The bank's CEO, Jane Fraser, said in January that Citi had cut 1,500 managerial roles, comprising 13% of its worldwide leaders. The changes would create annual savings of about $1 billion, she said at the time.

 

 

Citigroup to lay off 286 employees in New York

(Reuters) - Citigroup will lay off 286 employees in New York, according to filings to the State Department of Labor, at a time the bank is carrying out its biggest overhaul in decades.

 

Three separate notices dated earlier this week showed the layoffs would impact 239 employees from its primary banking subsidiary, 44 from its broker-dealer unit and three from its technology arm.

Citigroup said in January it would cut 20,000 jobs over the next two years, while acknowledging a "clearly disappointing" quarter marred by one-off charges that resulted in a $1.8 billion loss.

The lender is aiming to reduce its global workforce by roughly 8% through 2026, including layoffs from the reorganization, Chief Financial Officer Mark Mason told reporters at the time.

CEO Jane Fraser announced the sweeping reorganization plan in September to simplify the bank's structure after divesting from non-core markets and focusing on profitable areas.

Citigroup to cut 20,000 jobs

Citigroup plans to eliminate some 20,000 jobs by the end of 2026, marking the next phase of the bank’s most dramatic restructuring plan in decades. 

The cuts will trim about 10% of Citi’s head count, which totaled 200,000 in December excluding the staff employed by a Mexico business that is being spun off. Citi detailed its cost-cutting plans on Friday, when it also announced a fourth-quarter loss.

The bank reported a huge earnings loss of $1.16 per share for the fourth quarter, far below estimates of a loss of 11 cents per share, according to FactSet.

Citi said there were several one-time costs that impacted its results. These included a $1.7 billion charge the bank had to pay related to the regional banking crisis last spring, an $880 million loss in Argentina and $800 million in restructuring costs associated with about 7000 layoffs in 2023.

These layoffs are part of Citi CEO Jane Fraser’s years-long effort to cut red tape at the company and boost lagging profits. Fraser called the results “very disappointing” on a call Friday morning, but said that 2024 would be a “turning point year” for the country’s third largest lender.

In addition to the 20,000 job cuts at the company’s operations, the bank said it will shed 40,000 employees from its Mexican retail unit through an IPO, bringing the total headcount for the company to around 180,000 from 240,000.

Over the next few years, the bank said it expects to pay up to $1 billion in severance pay and reorganization costs related to its planned restructuring.

Citigroup reorganizes businesses, cuts jobs as bank is mired in stock slump

While some rivals have been eliminating jobs amid a slump in Wall Street activity, Citigroup staff levels have grown as the firm complies with regulators’ demands to improve risk controls. The bank had 240,000 workers as of June, 4% higher than a year earlier.

CEO Jane Fraser addressed the coming job cuts in a memo to staff.

“We’ll be saying goodbye to some very talented and hard-working colleagues who have made important contributions to our firm,” Fraser said.

Citi cuts around 35 jobs on London trading floor

(Reuters) - U.S. bank Citi (C) has cut around 35 jobs across its capital markets trading operation in London, sources with knowledge of the changes said on Wednesday.

The cuts, announced internally last month, were across all asset classes, the sources told Reuters, and included head of G10 currency strategy Valentin Marinov.

High-earning jobs on trading floors have been squeezed by the growth in machine-driven trading and broader cuts at banks since the 2008 financial crisis, and lenders are also putting aside billions against the cost of litigation over charges they manipulated currency and interest rate markets.

Citigroup Inc said when it published third quarter results last month that it was pulling out of consumer banking in 11 markets, including Japan and Egypt, as it seeks to cut persistently high costs.

The third-largest U.S. bank, built with a series of acquisitions spanning back to the 1980s, has been trying to slim down since the financial crisis to be as profitable as rivals. It has shed hundreds of billions of dollars of bad assets.

Citigroup to Cut 11,000 Jobs

Citigroup’s announcement that it will slash 11,000 jobs worldwide underscores its major contraction since nearly collapsing during the financial crisis and its continuing battle against high operating costs and persistently sluggish markets.

The cost-cutting fervor, including tens of thousands of Wall Street jobs slashed in recent years, is expected to continue at Citigroup and other banks as they combat sagging stock prices, lackluster revenue and new regulations that damp profits.

The cuts at Citigroup, many coming from its global consumer banking business, reflect a new emphasis on aiming at commercial banking jobs, some bank analysts said, rather than mainly eliminating investment banking positions.

With pressure mounting from shareholders, Citi has been trying to bolster returns, in part by working through a glut of bad loans and systematically dismantling some businesses. The job cuts amount to 4 percent of the work force and will bring the company’s head count down to about 250,000, down by a third since before the financial crisis in 2007.

Citigroup Said to Cut 95 London Jobs in Markets Business

Citigroup Inc. (C), the third-biggest U.S. bank by assets, is cutting about 95 jobs in its markets business in London to reduce costs, two people with knowledge of the plan said.

The cutbacks, part of the 4,500 reductions announced this week, are taking place today in fixed income, currencies, rates and commodities, as well as equities, said the people, who declined to be identified because the talks are private. Citigroup officials in London declined to comment.

Financial firms globally have announced more than 200,000 job losses this year, up from about 58,000 last year and 174,000 in 2009, according to data compiled by Bloomberg. Citigroup Chief Executive Officer Vikram Pandit is cutting staff as banks prepare for regulations on minimum capital levels and the European sovereign-debt crisis persists, threatening revenue from trading and investment banking.

Bank of America Corp. (BAC) CEO Brian T. Moynihan said in September that the Charlotte, North Carolina-based lender plans to cut 30,000 jobs in the next few years.

Credit Suisse Group AG (CSGN) said last month it would eliminate 1,500 jobs after its investment bank posted its first quarterly loss since 2008 in the third quarter. BNP Paribas (BNP) SA, France’s biggest bank, said in the same month that it will trim about 1,400 jobs at its securities unit, with most coming from the lender’s capital markets and structured-finance teams.

Citigroup to eliminate 4,500 jobs, says CEO Pandit

NEW YORK (CNNMoney) -- Citigroup will lay off roughly 4,500 employees over the next few months, CEO Vikram Pandit said Tuesday, as Wall Street continues to bleed jobs amid tough economic times.


Speaking at the Goldman Sachs Financial Services Conference in New York on Tuesday afternoon, Pandit said the cuts would come over the next few quarters.

Citi (C) will book a charge of approximately $400 million in the fourth quarter of this year due to severance payments and other expenses associated with the layoffs.

"As part of our ongoing efforts to control expenses, we are making targeted headcount reductions in certain businesses and functions across Citi," said Jon Diat, spokesman for Citi, in an email.
Citi employed 267,000 employees worldwide as of September. The company said in November that it was planning layoffs, which a source said at the time were expected to top out around 3,000.
Wall Street's shrinking job pool

The financial services industry has lost more than 200,000 jobs globally this year, according to data compiled by Bloomberg. Bank of America (BAC) alone has announced plans to cut 30,000 employees over the next several years.

Year-end bonuses, meanwhile, will decline between 20% and 30% on Wall Street this year, according to compensation consulting firm Johnson Associates. Overall compensation for finance professionals in the United States, Europe, the Middle East and Africa will drop 27% this year, the lowest levels since 2008, according to the Options Group consulting firm