2024-01-12 15:15:58
Citigroup plans to cut a net 20,000 positions in the medium term worldwide, the American bank said on Friday, engaged in a major restructuring, particularly internationally.
In mid-September, Managing Director Jane Fraser revealed that this transformation would be accompanied by a major reorganization of the hierarchical structure, the most important for the bank “in almost twenty years”.
During a conference call, Chief Financial Officer Mark Mason indicated that provisions made in the fourth quarter of 2023, to the tune of $780 million, covered approximately 7,000 job cuts in 2024.
The New York group had around 200,000 employees at the end of 2023, excluding retail banking in Mexico, a total which it plans to increase to 180,000, according to documents published Friday.
Citigroup has initiated a major strategic reorientation, which has resulted in a divestment of a number of international retail banking subsidiaries.
In particular, it plans to list its Mexican subsidiary Banamex, which brings together services for individuals and SMEs.
Overall, Citi is refocusing on institutional clients, private banking and wealth management, as well as credit cards, while remaining active in retail banking in the United States.
The brand plans to achieve around $2 to $2.5 billion in full-year savings thanks to this overhaul.
The largest American bank in 2006, Citigroup then had 325,000 employees.
It suffered the full brunt of the 2008 financial crisis, weighed down by significant portfolios of risky assets, notably “subprime” loans.
More established abroad than its American rivals, it has also been more vulnerable to international crises, notably the invasion of Ukraine or the recent devaluation of the Argentine peso.
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