Citigroup Eliminates More Jobs Amid Share Buybacks and Expense Reduction Commitment
Job Cuts Continue Despite CEO’s Promise to Streamline Operations
Citigroup has eliminated more jobs this week, just as executives were announcing new share buybacks and doubling down on Chief Executive Officer Jane Fraser’s commitment to expense reductions. The bank is cutting positions in its wealth business and technology unit, as well as a team that compiles data and analysis on its clients, according to sources familiar with the matter.
Senior Departures and Restructuring
The bank has also seen senior departures, including Shadman Zafar, the bank’s Dallas-based co-chief information officer, who is retiring. In Wealth at Work, a unit that caters to individuals at professional-services firms, several managing directors were cut as part of a broader restructuring of the team.
Cost Savings and Investment
The bank is trying to streamline its operations and lift profitability to compete more closely with its rivals, with an aim to reduce jobs by 20,000 by the end of 2026. Cost savings will partly be channeled into investing in areas such as data quality and regulatory controls, according to Fraser.
Bank’s Headcount
As of the end of the fourth quarter, the company’s headcount was 229,000, down by 10,000 from a year earlier.
Share Buybacks and Stock Performance
On Wednesday, the bank’s shares jumped after the company announced $20 billion in share buybacks, even after executives rolled back a key target for profitability.
Company Statement
"Leadership changes, retirements, and targeted staff changes are all normal course when running a business," Citigroup said.
FAQs
Q: How many jobs has Citigroup eliminated this week?
A: The bank has eliminated positions in its wealth business and technology unit, as well as a team that compiles data and analysis on its clients.
Q: Who are the senior executives leaving the bank?
A: Shadman Zafar, the bank’s Dallas-based co-chief information officer, is retiring. Several managing directors in Wealth at Work were also cut as part of a broader restructuring of the team.
Q: What is the bank’s goal for job reductions?
A: Citigroup aims to reduce jobs by 20,000 by the end of 2026.
Q: How does the bank plan to use cost savings?
A: Cost savings will partly be channeled into investing in areas such as data quality and regulatory controls.
