Citigroup Inc. announced that it will eliminate roughly 1,000 positions this week as part of a long‑term restructuring effort that began two years ago with a goal of trimming 20,000 employees by the end of 2026. The move is a continuation of the bank’s strategy to close performance gaps with rivals and address long‑running weaknesses in data governance and risk management.
The job cuts are concentrated in the bank’s consumer and commercial banking divisions, where the company has been investing heavily in technology to improve efficiency. Management explained that the reductions will free up capital for higher‑margin growth areas such as investment banking and wealth management, while also supporting the broader goal of simplifying operations and reducing overhead. The cuts represent about 0.4% of Citigroup’s 229,000‑person workforce, a modest but meaningful adjustment in the context of the bank’s 20,000‑person reduction target.
Citigroup’s CEO Jane Fraser said the restructuring “reflects adjustments we’re making to ensure our staffing levels, locations and expertise align with current business needs; efficiencies we have gained through technology; and progress against our transformation work.” The announcement follows a series of strategic asset sales and the appointment of Gonzalo Luchetti as CFO, signaling a continued focus on cost discipline and capital allocation.
The bank’s fourth‑quarter 2025 earnings are scheduled for January 14, 2026. Analysts had forecast EPS between $1.58 and $1.77 and revenue between $20.45 billion and $21.18 billion. Citigroup’s prior quarter (Q3 2025) reported non‑GAAP EPS of $2.24, beating estimates of $1.89, and revenue of $22.09 billion, up 9.3% year‑over‑year. The recent job cuts are expected to reduce operating expenses by an estimated $200 million annually, supporting the bank’s goal of improving net interest income and fee‑based earnings in the coming years.
Market reaction to the announcement was muted, largely because a broader sell‑off in bank stocks was triggered by news of a proposed 10% credit‑card interest‑rate cap. The job cuts themselves were viewed as a routine component of Citigroup’s multi‑year plan rather than a surprise event. Investors are watching the upcoming earnings release to gauge how the cost savings will translate into profitability and whether the bank’s guidance will be adjusted in light of the restructuring.
The restructuring aligns with Citigroup’s broader strategy to exit non‑core markets, streamline operations, and invest in technology. By reducing headcount in lower‑margin segments, the bank aims to improve its return on equity and free capital for higher‑growth initiatives. The move also signals confidence in the bank’s long‑term trajectory, as management emphasizes that the cuts are part of a disciplined approach to achieving sustainable growth and competitive parity with peers.
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