Citigroup Jobcut News: US Banking Giant To Slash 20,000 Jobs Following 'Disappointing' Q4 Results

US banking giant Citigroup is likely to slash at least 20,000 jobs over the next two years as part of a corporate reorganization exercise after it reported its worst quarter in almost 14 years. The decision is seen as part of Chief Executive Officer Jane Fraser's quest to boost profits and return cash to shareholders, the US bank said Friday.

The Wall Street giant said it expects to incur as much as $1 billion in severance and reorganization costs this year. Total expenses for the year will likely be between $53.5 billion and $53.8 billion, the New York-based bank said Friday. The firm spent $56.4 billion in 2023. According to media reports, the American lender will reduce its global workforce of 239,000 by 20,000 - or roughly 8% of staff - through 2026, including layoffs from the sweeping reorganization. The move will put the headcount at about 180,000 in the 2026 time period, down from 240,000 at the end of 2022 -- while also reflecting the expected spinoff of Citi's Mexico subsidiary, Banamex. Citi will no longer count 40,000 jobs when it spins off and lists its Mexican consumer unit Banamex in the ultimate initial public offering (IPO), eventually aiming to reach a staffing level of 180,000 employees, Mason said.

The multinational bank reported a $1.8 billion loss, or $1.16 a share in the fourth quarter of 2023 (October-December). Revenues fell 3% to $17.4 billion. The multinational bank has also significantly shrunk its global consumer banking footprint, divesting assets in China, Vietnam, and other markets.

"The fourth quarter was very disappointing," Fraser said in the statement. "Given how far we are down the path of our simplification and divestitures, 2024 will be a turning point."

Fraser has reportedly said the overhaul would help her boost a key measure of profitability known as return on tangible common equity to at least 11% by 2027 at the latest.