Citigroup Cuts 20,000 Jobs After Heavy Losses, Eyes $2.5 Billion Savings

Abhay Singh
2 Min Read

America’s leading bank, Citigroup Inc., plans to lay off more than 20,000 people in the next two years. The bank has taken this decision after the worst quarterly results in 14 years. This American bank has planned to cut its total workforce of 2,39,000 people by 20,000. In such a situation, by 2026, the total number of employees working in the bank may be reduced by 8 per cent.

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There Will Be A Big Reduction In Expenses Due To Layoffs

According to the report published in Moneycontrol, this retrenchment plan will cost Citigroup Inc. $1 billion. This money will be spent on additional salary and facilities for the laid-off employees. However, the overall expenses of the bank will be less. Citigroup has been busy reorganizing its business since the new chief executive officer, Jane Friesen, took charge of the bank. The bank is trying to reduce its expenses to increase its profits.

On Friday, The bank estimated that its expenditure this year could be between 53.5 and 53.80 billion dollars, slightly less than last year. Earlier, the total expenditure of the bank in 2023 was around $56.40 billion. Citigroup may save $2.5 billion in the next two years by laying off 20,000 employees.

Disappointing Results In The Quarter

While releasing the results for the October-December quarter, Citigroup said that it had suffered a loss of $1.8 billion during this period, which has been the most disappointing result for the bank in the last 14 years. The bank’s revenue has fallen by 3% to $17.40 billion compared to the previous year’s quarter.

After this result, the bank’s Chief Executive Officer, Jane Freshon, said that 2023 has not been as expected and 2024 is very important for us. The bank will do a large-scale restructuring in the next two years, through which a total saving of $ 2.5 billion has been planned.

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By Abhay Singh Journalist
Abhay has been with News Waker for over a few months and has covered various topics, from politics to business to sports. He is known for his engaging writing style and ability to explain complex issues in a way that's easy to understand.