Citigroup is preparing for another round of job cuts in March as part of its ongoing restructuring and cost-reduction drive. The planned layoffs are expected to follow an earlier round of reductions carried out this month and will mark a continuation of the US banking giant’s efforts to simplify its operations and improve profitability.
The March cuts are likely to affect managing directors and other senior employees across multiple business lines, underscoring that the restructuring is reaching deeper into the organisation, Reuters reported on Saturday quoting people familiar with the matter. While the exact number of roles to be eliminated and the geographies involved have not been disclosed, the timing is expected to come after the bank completes its annual bonus payouts, a practice commonly followed by large financial institutions during restructuring phases.
Citigroup has already reduced its workforce by about 1,000 employees earlier this year. These job cuts form part of a broader multi-year transformation under chief executive Jane Fraser, who has been focused on streamlining the bank’s sprawling global structure, reducing management layers and sharpening accountability. Since 2022, the bank’s global headcount has steadily declined as Citi exited several international consumer businesses and reorganised its institutional operations.
The restructuring has been driven by a combination of factors, including pressure to cut costs, improve returns and address long-standing regulatory concerns related to risk management and internal controls. In recent quarters, the bank has made progress on compliance issues that had previously drawn scrutiny from regulators, giving management greater room to push ahead with structural changes.
From a market perspective, investors have largely welcomed Citi’s efforts to become leaner and more focused. The bank’s shares performed strongly last year, reflecting optimism that the restructuring will lead to more consistent earnings and better capital efficiency. However, the continued layoffs highlight the scale of the challenge facing the bank as it attempts to balance cost discipline with the need to retain talent and sustain growth in key businesses.
The latest round of planned job cuts also reflects a broader trend across the global banking sector, where large lenders are reassessing staffing needs amid slower deal activity, increased automation and shifting client demands. For Citigroup, the March layoffs signal that its transformation is far from complete and that management remains committed to reshaping the organisation, even as the human cost of the overhaul continues to draw attention.