Citigroup has said it was cutting 10%, 20,000 employees, of its workforce

Citigroup has said it was cutting 10%, 20,000 employees, of its workforce.

Citigroup has announced plans to reduce its workforce by 10% in an effort to improve the bank's financial performance and stock price.

Around 20,000 employees will be affected over the "medium term," which typically refers to a three- to five-year period. Citigroup, the third-largest U.S. bank by assets, had approximately 200,000 employees at the end of 2023, excluding Mexican operations being spun out. CEO Jane Fraser initiated a comprehensive overhaul of the bank in September, aiming to address longstanding issues with expenses. The restructuring project incurred a $780 million charge in the fourth quarter, with additional expenses expected in 2024.

The bank anticipates potential cost savings of up to $2.5 billion over time. The ongoing job cuts, part of "Project Bora Bora," reflect a broader industry trend of banks trimming their workforce to reduce costs amid stagnant revenue. Citigroup's restructuring efforts have led some employees to explore alternative opportunities, with the next round of cuts scheduled for January 22.