Layoff frenzy at Citigroup: CFO Mark Mason announced 20,000 job cuts globally. Here’s what you need to know

• 2024 has barely started and the layoff train has left the station.
• Google let go of 1,000 employees and may potentially lay off another 30,000!
• Similarly, Citigroup announced it will cut 20,000 jobs globally! 
• Key developments you should be aware of.

Layoffs announced at Citi

Citigroup’s CFO, Mark Mason, has announced that the company will cut 20,000 jobs globally, within the next two years.

Additionally, the bank intends to reduce its workforce in the Mexican retail division by 40,000 employees through an IPO.

As a result, the total number of employees at the bank will decrease from 240,000 to around 180,000.

Why is it happening?

This layoff plan is part of Citi CEO Jane Fraser’s ongoing overhaul initiative by CEO Jane Fraser -to streamline operations and improve underperforming profits.

The layoff news coincided with Citi reporting a $1.8 billion Q4 2023 loss, their worst quarter in 15 years.

These layoffs aim to save $2.5 billion in costs in the long term.

Financial performance

According to FactSet, the bank’s fourth-quarter earnings loss was $1.16 per share. This is much lower than the estimated loss of 11 cents per share.

Citi explained that their results were affected by various one-time expenses, such as,

• $1.7 billion charge related to the regional banking crisis
• $880 million loss in Argentina
• $800 million in restructuring costs due to 7000 layoffs in 2023.

Severance pay

The bank might spend as much as $1 billion on severance pay and reorganisation expenses in the upcoming years.

About Citigroup

Citigroup Inc., or Citi, is a multinational investment bank and financial services corporation based in New York City.

It is the 3rd largest bank in the USA amassing a total asset of US$2.3 trillion as of 2023.

Citi has an on-the-ground presence in over 144 countries.

Citi’s top management comprises of,

CEO – Jane Fraser

CFO – Mark Mason

COO – Anand Selva

Head of Banking – Peter Babej, now replaced by Viswas Raghavan

Head of Operations & Technology – Mike Whitaker

Head of Wealth Management – Andy Sieg (He was previously the president of Merrill Wealth Management, where he oversaw a team of more than 25,000 people providing investment and wealth management services to individuals and businesses across the U.S.)

About Citi India

Citi began operations in India over a century ago in 1902 in Kolkata and today is a significant foreign investor in the Indian financial market.

It provides a wide range of financial products and services to institutions including corporate and commercial banking, investment banking, treasury and trade services, markets, and custody services.

Citi India’s top management consists of,

CEO – Ashu Khullar

CFO – Rajeev Mantri 

Head – Operations & Technology – Balaji Nuthalapadi

MDs promoted

In December 2023, Citigroup announced the appointment of 40 dealmakers as new managing directors in the bank’s markets division.

That included,

• 16 MDs from the UK
• 17 MDs from the US
• 1 MD from Singapore,
• 1 MD from Italy
• 1 MD from Taiwan
• 1 MD from Nigeria
• And 3 MDs from other regions

Do you see more banks shedding their workforce this year? Are Indian Banks doing well?