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Citi to lay off 430 employees in New York across units

Published 01/04/2024, 17:27
Updated 01/04/2024, 18:51
© Reuters. FILE PHOTO: Workers exit the Citi Headquarters in New York, U.S., January 22, 2024.  REUTERS/Brendan McDermid/File Photo
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(Reuters) -Citigroup will lay off 430 employees across different divisions in New York, the bank disclosed in filings with the State Department of Labor on Monday.

The layoffs will impact 363 employees of the lender's primary banking unit, Citibank. Workers in the technology and broker-dealer arm will also be affected, the filings showed.

The bank last week ended a sweeping overhaul, its biggest in decades, as part of an effort to simplify its structure and improve performance.

Unveiled in September, the reorganization reduced management layers to eight from 13 as part of an effort to cut bureaucracy. Citi has also set a goal to trim its global workforce by 20,000 over the next two years.

The lender did not immediately respond to a request for additional comment. The latest layoffs are scheduled for June, according to the filings.

The bank's CEO, Jane Fraser, said in January that Citi had cut 1,500 managerial roles, comprising 13% of its worldwide leaders. The changes would create annual savings of about $1 billion, she said at the time.

© Reuters. FILE PHOTO: Workers exit the Citi Headquarters in New York, U.S., January 22, 2024.  REUTERS/Brendan McDermid/File Photo

Citi has been looking to boost its profits and stock performance, which has lagged those of its rivals. Wells Fargo (NYSE:WFC) analyst Mike Mayo, who has rated Citi's stock as his top pick, had previously said that 2024 was part of a "multi-decade inflection point" for the bank.

So far this year, Citi's stock has gained nearly 23% as of last week's close, outperforming rivals JPMorgan Chase (NYSE:JPM), Bank of America (NYSE:BAC) and Wells Fargo. It has also fared better than the S&P 500 banks index, which has gained 14.4%.

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