Citigroup’s restructuring efforts, investment in technology and reduction of overhead costs will result in a loss of 20,000 jobs, or 10% of its workforce, through 2026, the bank said today in its fourth-quarter earnings report. 

Total headcount at Citi as of the fourth quarter of 2023 was 239,000, down from 240,000 during the corresponding period last year, according to the bank’s earnings supplement. 

Headcount and expense reduction “will allow us to right-size the firm and businesses to improve performance and return,” Chief Financial Officer Mark Mason said during today’s earnings call. The move will save Citi nearly $2 billion, he said.  

According to Mason, the following areas of restructuring are leading to the bank’s cuts: 

• Organizational simplification; 
• Elimination of stranded costs; and 
• Transformation and technology.  

BIGGER PICTURE: In 2022, Chief Executive Jane Fraser announced the restructuring when the bank set out to divest from 14 international markets to simplify the organization.  

The bank sold its wealth business in China to HSBC in October 2023, sold its retail banking operations in India to Axis Bank in March 2023 and exited its Indonesia banking operations with a sale to United Overseas Bank in November 2023.  

In September 2023, Fraser announced the change to the bank’s management structure including the five businesses it would operate around: Trading, banking, services, wealth management and U.S. consumer offerings, according to a bank release in September. 

During today’s earnings call, Fraser said: “The simplification [process] is also enabling Citi to be more client-focused and less bureaucratic. The modern-day modernization of our tech infrastructure is proceeding at pace, allowing us to deliver new capabilities to our clients.” 

BY THE NUMBERS: In Q4, Citi reported; 

• Net interest income of $13.8 billion, up 4% YoY; 
• Total revenue of $17.4 billion, down 3% YoY; and 
• Net loss of $1.8 billion, down from a profit of $2.5 billion in Q4 2022. 

NOTEWORTHY: In 2023, the bank spent $12.2 billion on technology, according to its Q4 earnings presentation. That included $6.2 billion on “change-the-bank” technology and $6 billion on “run-the-bank” technology.  

Technology spend in 2023 was up 9% from 2022 and up 23% from 2021, according to the presentation.  

The bank invested in the following technologies in 2023:  

• B2B payment solutions provider Hokodo; 
• Payment software provider Pismo; and  
• Payments fintech Icon Solutions.  

FUTURE LOOK: In 2024, Citi plans to invest in payments, liquidity, trade finance and security services fintechs amid changing macroeconomic conditions, Bis Chatterjee, head of partnerships and innovation at Citi Treasury and Trade Solutions, told Bank Automation News. 

Chatterjee will speak at Bank Automation Summit U.S. 2024 on Tuesday, March 19, at 3:45 p.m. CT, in Nashville, Tenn.  

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