Most recently, there were around 239,000 jobs at Citgroup. The US bank now wants to reduce the number of jobs by around 8 percent in the medium term.
The major US bank Citigroup wants to cut 20,000 jobs in the medium term after a surprising quarterly loss. When presenting the annual balance sheet, bank boss Jane Fraser reported a “disappointing” final quarter with a loss of 1.8 billion US dollars (1.6 billion euros). She promised a turning point for 2024. The bank is making progress with streamlining its structures and separating business units.
Fraser announced a major restructuring of the bank in September. She wants to reduce the number of management levels from 13 to just 8. The 20,000 jobs on the elimination list correspond to a good eight percent of the approximately 239,000 jobs at Citigroup. First of all, the renovation will cost money: for 2024, the bank expects one billion dollars in special costs, for example for severance payments.
Last year, Citigroup only increased its income by four percent to $78.5 billion despite high interest rates. She also set aside significantly more money for impending loan defaults. The surplus collapsed by 38 percent to $9.2 billion in 2023 due to the loss in the final quarter. The bank has to pay 1.7 billion into the deposit protection fund, which had to step in due to the collapse of two US institutions last year.
Source: Stern
