Citigroup Inc. C is preparing to cut about 1,000 jobs this week, according to Bloomberg News, published on MSN News. The move aligns with a broader restructuring plan announced in January 2024 that targets nearly 20,000 job cuts, or about 8% of the global workforce, by 2026.
Since CEO Jane Fraser took charge in 2021, Citigroup has focused on simplifying its governance structure by eliminating various management layers. Pursuant to this, the company changed its operating model and the leadership structure. The bank has already reduced its headcount by more than 10,000 employees so far, reflecting steady progress toward its cost-reduction goals.
Beyond workforce reductions, Citigroup is accelerating the adoption of artificial intelligence (AI) to boost productivity and improve operational efficiency. At the same time, the bank is streamlining its global footprint by exiting consumer banking operations across 14 markets in Asia and EMEA and has since completed exits in nine countries. These initiatives are expected to free up capital and enable Citigroup to focus on higher-return core businesses, particularly wealth management operations in key global hubs such as Singapore, Hong Kong, the UAE, and London.
Citigroup’s latest round of job cuts reflects a deliberate shift toward a leaner, more technology-driven operating model aimed at improving efficiency and long-term profitability. The company expects its transformation initiatives to generate annualized run-rate savings of $2–2.5 billion by 2026. Management also anticipates revenues to grow at a 4–5% compound annual rate through 2026.
Similar to C, several large financial institutions, including Wells Fargo WFC and UBS Group AG UBS, are pursuing workforce reductions as part of broader efficiency initiatives.
Wells Fargo has signaled that its workforce could shrink further in 2026 as part of a broader push to improve efficiency and expand the use of AI across its operations. At the Goldman Sachs 2025 conference held in December, CEO Charlie Scharf indicated that the bank is preparing for additional staff reductions heading into next year. Wells Fargo plans to roll out AI gradually over the next year and continue expanding its use beyond 2026, with AI-enabled efficiencies expected to support operational improvements over time.
Meanwhile, UBS Group AG is preparing to cut up to 10,000 jobs globally by 2027, according to a Business Today news article published on MSN, as the bank continues to integrate Credit Suisse. Since completing the acquisition in 2023, UBS Group AG has already eliminated around 15,000 roles, largely stemming from overlapping functions created by the merger. Going forward, workforce reductions could accelerate depending on the pace and progress of the Credit Suisse integration, as UBS works to remove redundancies and streamline its combined operations.
Source: finance.yahoo.com
