Large corporations worldwide are continuing the trend of downsizing, sending shockwaves through the job market as the new year unfolds. Citibank, a renowned global bank, recently announced a significant workforce reduction, signalling challenging times for its employees. Just within the initial weeks of the year, Citibank's decision to lay off 20,000 employees over the next two years has added to the concerns of workers globally.
Mark Mason, the Chief Financial Officer (CFO) of Citigroup, disclosed this substantial downsizing plan, citing a net loss of $1.8 billion in the fourth quarter of 2023. This quarterly loss represents the most significant setback Citibank has faced in the past 15 years. Consequently, the bank aims to streamline its operations by trimming its workforce, anticipating long-term savings of $2.5 billion.

Citibank faced additional financial challenges, including a $1.7 billion payment related to the regional banking crisis and an $880 million loss in Argentina. To address these setbacks, the bank plans to implement around 7,000 layoffs in 2023, incurring restructuring costs of $800 million. The overall strategy involves reducing 20,000 jobs globally within the company's operations, along with an additional 40,000 job cuts from its Mexican retail unit.

Citibank's decision to cut 20,000 jobs is not limited to a specific country or region, confirming that these layoffs will have a worldwide impact. The bank expects to allocate up to $1 billion for restructuring costs and payments associated with the planned workforce reduction over the coming years. This move is part of Citibank's broader initiative to control costs and enhance revenue in the face of challenging economic conditions.
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Sindujaa D N

13/01/2024 11:58 PM