The bank announced in January the largest restructuring plan in its history.
Photo credit SIPA
By Claire Lemaitre
Published on 02/29/2024 at 3:44 p.m.
Citigroup will lay off 286 employees in New York, according to documents filed with the State Department of Labor. In detail, these layoffs would affect 239 employees of its main banking subsidiary, 44 of its brokerage unit and three of its technology branch.
The bank is carrying out its biggest restructuring in decades: Citigroup announced in January the elimination of 20,000 jobs over the next two years, while acknowledging a “clearly disappointing” quarter marked by one-off charges which led to a loss of 1 .8 billion dollars.
Downsizing
The bank aims to reduce its global workforce by around 8% by 2026, including layoffs linked to the reorganization, Chief Financial Officer Mark Mason told reporters at the time.
CEO Jane Fraser announced a sweeping reorganization plan in September aimed at simplifying the bank’s structure after divesting from non-core markets and focusing on profitable areas.
A complicated year
Banks have cut 61,905 jobs in 2023, the worst year for the sector since 2008, according to data from the Financial Times – compared to some 140,000 cuts recorded in the wake of the subprime crisis.
Wall Street establishments have particularly suffered, with “investment banks struggling to adjust to the rapid rise in interest rates in the United States and Europe,” explains the newspaper. Adding a small number acquisitions and IPOs in recent months, the sector finds itself forced to reduce its teams to protect its margins, explains the FT. A step backwards after massive hiring during the post-covid period…
2024-02-29 14:44:00
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