Citigroup is expected to announce another round of layoffs in March, following a reduction of around 1,000 jobs that took place earlier this year, according to people familiar with the plans.
The new wave of job cuts is likely to be revealed after annual bonuses are paid, although the size and geographic scope of the reductions remain unclear at this stage.
Sources said the previously unreported layoffs form part of the bank’s broader effort to reduce costs and reshape its workforce to better match current business conditions.
Citigroup has declined to provide specific details on the upcoming cuts but confirmed that reducing headcount remains part of its long-term strategy.
“These changes reflect adjustments we’re making to ensure our staffing levels, locations and expertise align with current business needs; efficiencies we have gained through technology; and progress against our Transformation work, which is nearing target state.”
The statement highlights how technological improvements and restructuring efforts are allowing the bank to operate with fewer employees while maintaining operational effectiveness.
Citigroup’s latest job reductions come as Chief Executive Jane Fraser continues to advance a wide-ranging turnaround plan that began shortly after she took office in 2021.
Her strategy has focused on simplifying the bank’s organizational structure, exiting less profitable markets, strengthening compliance controls, and improving overall profitability.
The goal is to close the performance gap between Citigroup and its Wall Street rivals, which have generally delivered stronger financial returns in recent years.
Workforce reductions have been a central part of that strategy, with thousands of jobs already eliminated since the transformation program was launched.
Senior Staff Expected to Be Most Affected
The March layoffs are expected to have a significant impact on senior employees, including managing directors and other high-ranking staff across several business lines.
One source said the reductions would not be limited to any single division, indicating a broad-based approach to trimming leadership roles throughout the organization.
Some senior managers have already been reassigned to different departments as they seek to secure alternative positions before headcount reductions take effect.
These internal shifts reflect growing competition for a shrinking number of senior roles as the bank continues to streamline its management structure.
The earlier round of job cuts this year also affected a substantial number of senior employees, signaling a more aggressive approach to cost control.
Traditionally, banks have focused layoffs on junior or support staff, but Citigroup’s strategy suggests leadership positions are now equally under review.
This approach underscores management’s belief that meaningful savings require reductions at every level of the organization.
It also highlights the pressure on executives to demonstrate progress in cutting expenses while maintaining strong operational performance.
Employees across the bank remain uncertain about how deeply the next round of layoffs will extend and which departments will be most affected.
Headcount Shrinks as Cost Pressures Persist
Citigroup’s workforce has already seen a substantial reduction over the past several years as part of the restructuring drive.
Chief Financial Officer Mark Mason said the bank’s employee count fell from 240,000 in 2022 to 226,000 by the end of last year.
That reduction reflects both layoffs and attrition as the bank adjusted its staffing needs to match evolving business priorities.
Mason also pointed out that severance costs have been significant, reaching about $800 million last year as a result of workforce reductions.
“We have been reducing headcount and expect that trend to continue as we take a step back and look at the trajectory of our expense base.”
His comments suggest that further job cuts are likely even beyond the upcoming round planned for March.
Management has repeatedly emphasized that controlling expenses remains critical to improving the bank’s long-term profitability.
Lower staffing levels are seen as essential to offset slower revenue growth and rising compliance and technology costs.
Citigroup has also been investing heavily in automation and digital tools that reduce the need for large operational teams.
These investments are expected to support continued workforce reductions without harming service quality or risk management standards.
Jane Fraser’s Transformation Strategy
The latest layoffs represent another step in Jane Fraser’s broader effort to reshape Citigroup into a simpler and more efficient institution.
Fraser was appointed chief executive in 2021 and later received a one-time $25 million equity award for progress made on the turnaround plan.
She was also elected chair of the board in October, further consolidating her leadership role at the bank.
Earlier phases of the restructuring involved public announcements of major job cuts and asset sales across multiple international markets.
Those moves were designed to reduce complexity and focus resources on areas where the bank holds competitive advantages.
More recent workforce reductions have been carried out more quietly, according to people familiar with the matter.
This shift suggests the bank is now fine-tuning its structure rather than undertaking sweeping organizational changes.
It also reflects a desire to manage internal morale and public perception more carefully during later stages of the transformation.
Despite the lower profile of recent layoffs, their cumulative impact on the workforce remains substantial.
Regulatory Relief and Market Performance
The job cuts come as Citigroup receives some relief on the regulatory front after years of heightened scrutiny.
The U.S. Federal Reserve recently closed notices that required the bank to address weaknesses in its trading risk management systems.
In addition, the Office of the Comptroller of the Currency withdrew a 2024 amendment tied to a long-running consent order from 2020.
These developments signal progress in Citigroup’s efforts to strengthen its compliance and risk management frameworks.
Regulatory improvements may provide greater flexibility for management to focus on growth and profitability initiatives.
Citigroup’s stock performance has reflected growing investor confidence in the turnaround strategy.
The bank’s shares rose 65.8% in 2025, significantly outperforming both peers and a broader index tracking major banking stocks.
Citigroup also returned substantial capital to shareholders, buying back $13.25 billion of its own stock last year.
So far this year, its shares are down 0.8%, showing a pause after last year’s strong rally.
Investors continue to closely watch how further job cuts and cost controls translate into financial performance.