Citi to cut about 20,000 jobs as it doubles down on its corporate overhaul
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- Citigroup will cut about 20,000 roles over three years as its corporate restructuring continues.
- The bank also had a "very disappointing" Q4 in 2023, CEO Jane Fraser said.
- The move could save the firm billions.
Citigroup will cut about 20,000 jobs over the next three years as part of its previously announced restructuring.
The cuts, which were detailed in Citi's earnings report on Friday, could save the company as much as $2.5 billion. The bank also said it had suffered a "very disappointing" Q4 in 2023, partially due to about $780 million in restructuring charges "related to actions taken as part of Citi's organizational simplification."
Citigroup had said in September it would be overhauling its corporate structure and cutting management layers, which was expected to include job losses. Internally, the initiative is known as "Project Bora Bora," and employees have discussed cuts that could amount to at least 10% of the company's workforce in several major businesses, according to CNBC. Redundancies related to the overhaul began in November, CNBC reported.
The job cuts over the next few years will leave the company with a head count of about 180,000, minus its Mexico operations, which it's spinning off.
In a press release, CEO Jane Fraser said the company "made substantial progress" simplifying Citi in 2023, and that 2024 will be a "turning point as we'll be able to completely focus on the performance of our five businesses and our Transformation."
The bank is not alone in pushing forward with job cuts in 2024. Google laid off hundreds of workers, and Amazon is also laying off "several hundred" employees in its Amazon Prime Video and Amazon MGM Studios divisions.