Citigroup's Drastic Cut: 20,000 Jobs to Go
Citigroup, one of the leading financial institutions, has announced a significant downsizing plan, aiming to lay off 20,000 employees over the next two years. This decision, revealed by CFO Mark Mason, comes in the wake of a daunting $1.8 billion net loss in the fourth quarter of 2023, marking the bank's worst performance in fifteen years.
The layoffs, part of a strategic long-term cost-saving measure, are expected to help Citigroup save approximately $2.5 billion. The fourth quarter saw the bank grappling with a substantial earnings loss of $1.16 per share, significantly deviating from the estimated loss of 11 cents per share.
Citigroup attributed its poor financial results to a series of one-time costs. These included a $1.7 billion charge due to the regional banking crisis, an $880 million loss in Argentina, and $800 million in restructuring expenses related to around 7,000 layoffs executed in 2023.
CEO Jane Fraser, steering these sweeping changes, described the recent results as "very disappointing" but remains optimistic about 2024 being a pivotal year for Citigroup. Fraser's ongoing efforts are focused on cutting red tape and revitalizing the bank's profitability.
Citigroup, one of the leading financial institutions, has announced a significant downsizing plan, aiming to lay off 20,000 employees over the next two years. This decision, revealed by CFO Mark Mason, comes in the wake of a daunting $1.8 billion net loss in the fourth quarter of 2023, marking the bank's worst performance in fifteen years.
The layoffs, part of a strategic long-term cost-saving measure, are expected to help Citigroup save approximately $2.5 billion. The fourth quarter saw the bank grappling with a substantial earnings loss of $1.16 per share, significantly deviating from the estimated loss of 11 cents per share.
Citigroup attributed its poor financial results to a series of one-time costs. These included a $1.7 billion charge due to the regional banking crisis, an $880 million loss in Argentina, and $800 million in restructuring expenses related to around 7,000 layoffs executed in 2023.
CEO Jane Fraser, steering these sweeping changes, described the recent results as "very disappointing" but remains optimistic about 2024 being a pivotal year for Citigroup. Fraser's ongoing efforts are focused on cutting red tape and revitalizing the bank's profitability.