Citigroup is set to cut about 1,000 jobs this week, stepping up a sweeping restructuring programme aimed at shrinking the bank’s workforce and tightening its operating model.
Reuters reported on Monday that the cuts form part of a plan announced two years ago to reduce headcount by 20,000 roles by the end of 2026, citing a source familiar with the matter. The bank did not specify the number of jobs affected in the latest round but confirmed that workforce reductions would continue this year.
As of December 31, 2024, Citigroup employed about 229,000 full-time staff, according to its most recent annual report.
In a statement cited by Reuters, a Citigroup spokesperson said: “These changes reflect adjustments we’re making to ensure our staffing levels, locations and expertise align with current business needs.”
A multi-year overhaul
The latest cuts underscore the scale of the transformation under chief executive Jane Fraser, who took the helm in 2021 and has sought to close a performance gap with larger US rivals.
Fraser laid out a detailed overhaul in late 2023, focused on simplifying the bank’s structure, lifting returns and fixing long-standing weaknesses in data governance and risk management. The programme has included exiting several international consumer banking markets, flattening management layers and consolidating functions.
The restructuring has already triggered a wave of senior exits, particularly in wealth management and technology, as leadership roles were redefined. In one of the most visible recent changes, Gonzalo Luchetti was elevated to succeed Mark Mason as chief financial officer, as part of a broader management reshuffle reported by Reuters.
Pressure on costs and returns
Citigroup has faced sustained pressure from investors to improve efficiency and profitability, with costs running higher than at peers. The bank has said the restructuring should deliver meaningful expense savings once fully implemented, though near-term charges have weighed on results.
The US lender also operates with a relatively small domestic retail footprint compared with rivals. According to figures cited by Reuters, Citi has about 650 branches, concentrated across six major metropolitan areas, reflecting its long-running pivot towards global corporate and institutional banking.
While the immediate focus is on the latest round of cuts, management has been clear that the process is not finished. The bank has said it expects headcount reductions to continue through 2026, as roles are eliminated, consolidated or relocated.
For employees and investors alike, the latest job cuts signal that Citigroup’s restructuring has entered a more forceful phase—one that will test whether Fraser’s plan can deliver a leaner bank with stronger returns and tighter controls.