Citigroup Plans Job Cuts in China
Hong Kong, China – 07/06/2024: Pedestrians walk past a Citibank branch in the city.
Citigroup announced on Thursday that it intends to eliminate approximately 3,500 tech positions in China as part of an effort to refine its global operations and reduce expenses. These layoffs are expected to occur at the Shanghai and Darian City Solutions Centre and should be finalized by the beginning of the fourth quarter.
The jobs affected are mainly within the Information Technology Services Unit, which handles software development, testing, maintenance, and operational services for Citigroup’s international business. While some roles will be relocated to other technology centers, specifics regarding the number of positions or precise locations haven’t been disclosed.
This step is part of a broader initiative Citi launched last January, aimed at reducing its workforce by 10%, totaling around 20,000 jobs worldwide. The company has also trimmed operations in the US, Indonesia, the Philippines, and Poland.
Under CEO Jane Fraser’s leadership, Citigroup is undergoing significant restructuring to enhance profitability and restore investor trust after consistently lagging behind major US banking counterparts.
Many global banks face increasing pressure to lower costs in light of a worsening economic landscape, particularly as trade concerns rise due to former President Donald Trump’s tariff policies.
Recently, Hang Seng Bank, a subsidiary of HSBC based in Hong Kong, announced a restructuring aimed at eliminating overlapping roles, resulting in the reduction of about 1% of its core staff. This initiative was part of a plan to cut costs by $1.8 billion by the end of 2026, led by HSBC Group CEO Georges Elhedery.
Banking institutions with strong ties to Hong Kong and mainland China have reported a boost in lending, largely influenced by their exposure to China’s struggling real estate market. Meanwhile, several Wall Street banks, including JPMorgan and Bank of America, have started assessing underperforming employees as part of their annual review processes. It’s been reported that Bank of America let go of 150 bankers in its investment banking division, following similar actions by its competitors, JPMorgan and Goldman Sachs.
