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Citigroup (NYSE:C) plans to cut 20K jobs, or 10% of its workforce, in the next two years as it continues to execute on the transformation of the company engineered by CEO Jane Fraser.
Soon after Fraser became CEO in March 2021, she announced plans for Citi’s retail bank to exit about a dozen countries. Last year, the bank disclosed plans to reduce layers of management and simplify the company’s structure.
Chief Financial Officer Mark Mason also told reporters on Friday morning that the spinoff of its Mexican consumer bank Banamex through an initial public offering will shed an additional 40K in headcount, according to media reports.
At the end of 2023, Citi (C) had about 240K of direct staff. The aim is to get it down to 180K by the end of 2026, he said.
The staff reductions won’t hurt Citi’s (C) ability to increase revenue growth, Mason said.
On Wednesday, the company said it’s taking $780M of charges for restructuring in its Q4 2023 results.
In full-year 2024, Citi (C) expects to take ~$700M-$1.0B of severance and costs related to its reorganization, according to its earnings slides.
The company projects 2024 expenses of about $53.5B-$53.8B, down from $54.3B in 2023.
Meanwhile, Citi (C) sees 2024 revenue rising to about $80B-$81B, excluding markets and divestitures, from $78.5B in 2023, helped by expected gains in treasury and trade solutions, securities services, and a rebound in retail services. Lower partner payments in retail services is also contributing to that outlook, it said.
After rising as much as 3.4% in Friday morning trading, Citi (C) stock slipped to 0.6% by 10:50 AM ET.