"Citigroup to Lay Off 20,000 Employees: An In-Depth Analysis"

Citigroup plans to lay off 20,000 personnel Citigroup, the multinational investment bank, has plans to reduce its staff by 20,000 over the coming two years. This was announced by the Chief Financial Officer, Mark Mason, on Friday. The decision follows the company's declaration of a net loss of US$ 1.800 billion in the last quarter of 2023, which has been the worst quarterly performance for the bank in the last 15 years. Citigroup, the multinational banking giant, is anticipating that this reduction in workforce would help them save an estimated US$ 2.500 billion in the long-term. The alarming net loss of US$ 1.16 per share in the final quarter was significantly beyond the predicted loss of 11 cents per share, as reported by FactSet. Additionally, the bank cited numerous unique costs that adversely impacted their results. These costs include a charge of US$ 1.700 billion associated with the regional banking crisis in the previous spring, a loss amounting to US$ 880 million in Argentina, and about US$ 800 million in restructuring costs related to nearly 7,000 layoffs in 2023. All these layoffs come as a part of the ongoing efforts of Citigroup's CEO, Jane Fraser, aim at minimizing company bureaucracy and enhancing lagging profits. Though Fraser branded the results as "highly disappointing" during a phone call on Friday morning, she expressed confidence that 2024 would be a "decisive year" for the third-largest lender in the United States. "Whenever an industry or company goes through such reductions, it's hard on morale", Mason acknowledged during a call with reporters on Friday. However, he pointed out that the company had been very clear about its strategy and the momentum it hopes to achieve. Aside from the 20,000 jobs to be eliminated from the company's operations, the bank added that it will lay off 40,000 personnel from its Mexican retail unit via an initial public offering (IPO). This decision would decrease the total workforce of Citigroup from 240,000 employees to approximately 180,000. In the coming years, the bank stated that it anticipates disbursing up to US$ 1.000 billion in layoff compensations and reorganization costs associated with its planned restructuring. A Citigroup spokesperson highlighted that the layoffs would have global implications but refrained from breaking down the numbers region-wise. The CEO, Jane Fraser, first revealed her extensive restructuring efforts last September. She elaborated that restructuring the bank's leadership, enhancing accountability, and increasing share prices would necessitate a work-force reduction. "We will be saying goodbye to some very talented and industrious colleagues", mentioned Fraser at the time. Citigroup's stocks fell by 1.2% in Friday afternoon's trading.