![\"Citigroup](\"https:\/\/c.ndtvimg.com\/2024-01\/f1ls8an_citigroup_625x300_12_January_24.jpeg\"\/ "\\"Citigroup")
<\/div>\nThe move will put the headcount at about 180,000 in the 2026 time period (Representational)<\/p>\n<\/div>\n
New York: <\/b><\/p>\n
Citigroup plans to cut 20,000 jobs over the next couple of years as part of a corporate reorganization designed to boost profits and return cash to shareholders, the US bank said Friday.<\/p>\n
The downsizing was laid out in a presentation released in connection with the New York-based lender’s fourth-quarter results in which it reported a large loss.\u00a0<\/p>\n
The move will put 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.<\/p>\n
Citi Chief Executive Jane Fraser has unveiled a corporate overhaul with five business lines instead of two.<\/p>\n
The bank has also significantly shrunk its global consumer banking footprint, divesting assets in China, Vietnam and other markets.<\/p>\n
“Last month we announced consequential changes that align our organizational structure with our strategy and changes how we run the bank,” Fraser said.<\/p>\n
“When completed, we will have a simpler firm that can operate faster, better serve our clients and unlock value for our shareholders.”<\/p>\n
Overall, Citi reported a fourth-quarter loss of $1.9 billion compared with profits of $2.5 billion in the 2022 period. Revenues fell three percent to $17.4 billion.<\/p>\n
The results were weighed down by several cost items, including $780 million for severance and other costs expenses connected to the reorganization.<\/p>\n
Citi Chief Financial Officer Mark Mason said the fourth-quarter charge corresponds to 7,000 job cuts over the next year.<\/p>\n
Other one-time costs included a $1.7 billion special assessment to replenish a Federal Deposit Insurance Corporation (FDIC) emergency fund after the failures of Silicon Valley Bank and Signature Bank.<\/p>\n
Citigroup also booked reserves of $1.3 billion associated with risks connected to Argentina and Russia, plus a hit of $880 million from the devaluation of the Argentine peso.<\/p>\n
Shares of Citi rose 0.8 percent in morning trading.<\/p>\n
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)<\/i><\/p>\n<\/div>\n