Citigroup Slashes 2,000 Jobs in Q3, Part of 7,000 Cuts in 2023 Amid Company Restructuring

City Group Cuts 2,000 Jobs in Q3

In the third quarter (Q3), City Group has laid off 2,000 employees. According to reports, this downsizing has increased the company’s total severance charge for the year to $650 million, which is equivalent to 5,413 crores rupees.

City Group laid off a total of 7,000 jobs this year.

City Group’s Chief Financial Officer, Mark Mason, discussed earnings with analysts during a conference call, stating that the company has cut 7,000 jobs this year. He further mentioned that the severance charges noted in the previous quarter of June were $450 million, which is approximately 3,747 crores, for capping jobs in nearly 5,000 positions.

The decrease in the number of employees due to restructuring charges

Mason also stated that the reason for reducing the number of employees in the company is restructuring charges. City Group announced last month that they will be restructuring the firm, focusing on five core businesses.

Reduction in jobs due to restructuring

According to reports, it has been stated in the meeting that there will be a reduction in jobs due to restructuring, but the company has not yet publicly disclosed the number. As of now, the company’s total number of employees has remained stable at 240,000 in the last four quarters. The company has recently added some technology staff and other employees.

City Group’s Expenses Increased by 6% in Q3

In the third quarter, City Group’s expenses increased by 6% to $13.5 billion, which is approximately 1.12 lakh crores. This was slightly less than what analysts had estimated. According to the earnings presentation, the bank still expects to keep total expenses at $54 billion for the full year, which is around 4.49 lakh crores. At the beginning of June, it was claimed in reports that the company will lay off 30 investment banking jobs and 20 corporate jobs in its London unit to face the challenges of the market.

Corporation Seeks Cost Reduction

The corporation seeks to reduce its expenses in line with the market conditions. According to Bloomberg’s report, this is not limited to just the institution but is also ending its international team, which provides comments and analysis on the foreign exchange market.