Citigroup Joins the Mass Layoffs Trend in 2023: Latest Updates
The year 2022 marked a turning point for layoffs, but the current year seems far worse, with companies from various sectors slashing jobs, resulting in mass layoffs. Citigroup is the latest company to join the layoff bandwagon, as it announces plans to cut less than 1% of its workforce, except for its remediation team working on a consent order. This news was reported by Reuters.
According to sources, the American bank is planning to eliminate several jobs within its investment banking division, as a dealmaking slump continues to weigh on Wall Street’s largest banks.
Citigroup’s remediation team is presently working on a 2020 consent order imposed by regulators, requiring the bank to improve its risk management and internal controls, which has resulted in significant investment in addressing these issues.
As of the fourth quarter of 2022, Citigroup reported a workforce of 240,000 employees. Citigroup’s CFO, Mark Mason, stated in a January earnings briefing, “We’re actively hiring to execute against our strategy. But we’re also replacing where that makes sense in light of the environment that we’re in.”
Meanwhile, Citigroup Inc’s Chief Executive Jane Fraser was paid $24.5 million for 2022, an increase of 9% from the prior year.
The announcement of layoffs comes amid growing fears of a recession, as corporate America is cutting thousands of jobs to control costs. Several companies, including Meta, Morgan Stanley, Intel, Microsoft, Johnson & Johnson, Twitter, Lyft, and others, have already undergone layoffs.
Last month, Citigroup reported a 21% drop in fourth-quarter profits, missing forecasts, as the bank increased provisions to prepare for a worsening economy, and investment banking revenue declined due to a sharp drop in dealmaking activity.
Recently, Citibank removed the signboard from its iconic Kanak building office in Kolkata’s Chowringhee Road, following Axis Bank’s acquisition of Citigroup’s India consumer business and NBFC consumer business from Citicorp Finance (India) Ltd.
Citigroup Inc. or Citi is an American multinational investment bank and financial services corporation headquartered in New York City. The company was formed by the merger of banking giant Citicorp and financial conglomerate Travelers Group in 1998; Travelers was subsequently spun off from the company in 2002.
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