News: Citigroup announces new round of job cuts: 430 positions to be eliminated

Talent Management

Citigroup announces new round of job cuts: 430 positions to be eliminated

Records submitted to the New York State Department of Labour on April 1 show that the company plans to lay off 430 employees.
Citigroup announces new round of job cuts: 430 positions to be eliminated

Citigroup Inc has initiated another wave of job reductions in its US investment banking division as part of its ongoing restructuring endeavours. Specifically, documents filed with the New York State Department of Labour on April 1 indicate that the company intends to terminate 430 employees. 

Employees in the technology, media, and telecom sectors within the banking industry are anticipated to bear the brunt of these changes. Recently, the bank finalised significant measures aimed at streamlining its operational framework and enhancing performance, following the initial announcement made in September 2023. 

This restructuring initiative involves reducing management layers from 13 to 8 and downsizing its global workforce by 20,000 within the next two years. As part of this effort, 5,000 positions have already been eliminated since September. 

In conjunction with its fourth-quarter 2023 results unveiled in January, the firm announced plans to trim 1,500 managerial positions, accounting for 13% of its global leadership. This move is expected to yield annual savings of $1 billion. 

By streamlining its leadership structure, the company aims to expedite decision-making, foster greater accountability, and sharpen its client-focused approach. As per the filings, the upcoming layoffs are anticipated to occur in June. 

Additionally, the organisation continues to advance its significant strategic initiative to withdraw from the consumer banking sector in 14 markets spanning Asia and the EMEA region. Progress has been made with sales completed in nine markets, comprising Australia, Bahrain, India, Malaysia, the Philippines, Taiwan, Thailand, Vietnam, and Indonesia. 

Furthermore, substantial progress has been achieved in winding down the consumer banking operations in South Korea, Russia, and China. The company has also recommenced the sales process in Poland. 

It remains committed to the plan of divesting its Mexico business through an IPO by 2025. The planned exits from certain markets will unlock capital for Citigroup, enabling the company to redirect investments towards expanding its wealth management operations in key financial centers such as Singapore, Hong Kong, the UAE, and London. 

This strategic shift aims to fuel fee income growth by capitalising on the burgeoning wealth in these regions. In line with this strategy, Citigroup's head of global wealth, Andy Sieg, recently unveiled plans to enhance the bank's wealth management footprint in the Greater Bay Area and other parts of Asia, with Hong Kong serving as a pivotal base. 

This expansion initiative underscores Citigroup's commitment to tapping into the wealth opportunities presented by Asia's economic growth, leveraging Hong Kong's status as a prominent financial hub. Despite recent challenges, Citigroup's stock has demonstrated strong performance, outpacing industry growth over the past six months with a 56.7% increase compared to the industry's 39.7% growth.

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Topics: Talent Management, #Layoffs, #HRTech, #HRCommunity

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