C - Citigroup to lay off 10% of its employees

2024-01-12 10:51:20 ET

Citigroup Inc (NYSE: C) just announced plans of lowering its global headcount by 10%. Its shares are paring back intraday gains at writing.

How many employees will be laid off?

The investment bank will lay off about 20,000 of its employees over the “medium term” as part of a sweeping overhaul its chief executive Jane Fraser announced in September.

Citi may choose to cut fewer than 20,000 jobs if it eventually decides to use internal resources instead of outsourcing tasks, its executives added in a press release on Friday.

The New York listed firm employed roughly 200,000 in total at the end of last year, excluding its operations in Mexico that are currently in the midst of being spun out.

Citi stock is still up close to 40% versus its low in late October.

Citi reported a loss for its Q4 today

Earlier on Friday, the financial services giant reported a $1.8 billion loss for its fiscal fourth quarter citing charges related to overseas risks and the banking crisis of 2023, as Invezz reported here . According to CEO Fraser:

The fourth quarter was very disappointing … but 2024 will be a turning point.

The multinational also attributed part of its quarterly loss to the ongoing corporate overhaul that aims at cutting costs and strengthening returns in the long run.

While severance and other costs related to the reorganization will likely incur up to $1.0 billion in 2024, Citi is convinced it will lower firmwide expenses by up to $53 billion over the medium term. Wall Street currently has a consensus “overweight” rating on .

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