Citigroup extends global workforce reductions into 2026

Investing.com -- Citigroup Inc (NYSE: C) is preparing to initiate a fresh wave of staff reductions in March, following a preliminary round of approximately 1,000 job cuts completed earlier this month.

“We will continue to reduce our headcount in 2026,” a representative of Citigroup wrote in an emailed statement to Investing.com. The bank attributed these changes to evolving business requirements, technological efficiencies, and the final stages of its institutional transformation.

Chief Executive Officer Jane Fraser remains committed to a multi-year restructuring effort aimed at streamlining the bank’s sprawling global operations and improving its competitive standing. The March cuts are anticipated to disproportionately impact managing directors and other senior-level employees across various business segments, according to earlier reporting from Reuters.

The upcoming layoffs are expected to be announced shortly after annual bonuses are distributed, according to Reuters, citing sources familiar with the internal plans.

Chief Financial Officer Mark Mason recently highlighted the bank’s downward staffing trajectory, noting the workforce has already contracted from 240,000 in 2022 to 226,000 by late last year. "We have been reducing headcount and expect that trend to continue as we take a step back and look at the trajectory of our expense base," Mason informed analysts.

The current phase of downsizing appears more discreet than previous public announcements, though it remains a central pillar of Fraser’s strategy to address regulatory hurdles and sluggish profitability. Some senior managers have reportedly sought reassignment to alternative divisions in an effort to secure their positions before the next round of departures.

As the bank nears its "target state" for organizational structure, the focus has shifted toward aligning expertise with modern digital infrastructure. “These changes reflect adjustments we’re making to ensure our staffing levels, locations and expertise align with current business needs,” the representative added in the aforementioned statement.

In response to the news, Citigroup stock is trading 1.3% lower in Friday’s session, reflecting investor unease despite the bank’s ongoing reorganization efforts. Although workforce reductions and cost-cutting measures typically bolster the bottom line, concerns over substantial severance payments appear to be weighing on market sentiment.

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