Citigroup is set to lay off 20,000 employees over the next two years, according to CFO Mark Mason. This decision follows the company’s reporting of a net loss of $1.8 billion for Q4 2023, marking its worst quarter in a decade and a half.
The bank recorded a considerable loss of earnings, suffering a loss of $1.16 per share for Q4, which is significantly more than the estimated loss of 11 cents per share as predicted by FactSet.
Among the factors influencing Citigroup’s results were a multitude of one-off costs, incorporating a $1.7 billion charge related to last spring’s regional banking crisis, an $880 million loss incurred in Argentina, and a staggering $800 million spent on restructuring.
These job reductions form part of an ongoing long-term strategy led by Citi CEO Jane Fraser to streamline processes within the company and improve its underperforming profits. In a recent call held on Friday morning, Fraser referred to 2024 as a pivotal year for the nation’s third largest lender.
In addition to the layoffs, the bank has plans to divest 40,000 more employees from its Mexican retail unit via an initial public offering (IPO). This would further reduce the total number of employees in the company from 240,000 to around 180,000.
In relation to its restructuring plans, Citigroup anticipates incurring costs of up to $1 billion for severance pay and reorganization over the next few years.
