In a significant move reflecting the changing tides in the banking sector, Citigroup has announced the layoff of 286 employees across New York. This decision is part of the bank's ambitious overhaul, the largest it has embarked on in decades, aimed at streamlining operations and boosting profitability.
The layoffs, detailed in filings with the New York State Department of Labor, will affect various divisions within the bank. The majority, 239 employees, are from Citigroup's primary banking subsidiary, while 44 are from its broker-dealer unit and three are from the technology arm.
This restructuring comes on the heels of Citigroup's announcement in January to eliminate 20,000 jobs over two years, responding to a challenging quarter that saw the bank post a $1.8 billion loss due to one-off charges. The global workforce reduction, approximately 8% by 2026, signifies a strategic pivot towards efficiency and focus on core profitable areas, as outlined by CEO Jane Fraser last September.
Citigroup's move underscores the broader industry trend of reevaluation and adaptation in the face of economic pressures, aiming for a leaner, more focused operation model.
