The reason for the drastic decision is the huge loss for the fourth quarter of 2023. It reached 1.8 billion USD.
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Citigroup will release 8%. personnel
The fourth quarter was clearly disappointing. 2024 will be critical – CEO Jane Fraser admitted in a conversation with analysts, quoted by Reuters.
Citi announced its restructuring plan last year. The changes will affect not only regular employees, but also management personnel. In the first stage of layoffs, the company said goodbye to 7,000 people. 2,000 employees left in the third quarter alone.
The entire group employs 239,000 people. people, and the plan for layoffs announced before the weekend includes a total of 20,000. employees. The restructuring process will take two years.
This is part of a strategy to reduce employment A spin-off of the Mexican company Banamex. It is to become an independent entity, reducing the number of employees reported to Citi by another 40,000. people.
A gigantic drop in profits
Citi's revenue in 2023 grew to $78.5 billion, or 4%. However, the bank noted a clear change profit reduction – This decreased by 38%. and reached 9.2 billion US dollars. Wells Fargo, one of the bank's competitors, saw revenue grow by 40 percent at the same time. up to 82.5 billion US dollars
Citi's losses were caused by several factors – from the exit from Russia to the devaluation of the Argentine peso and restructuring. Data presented by the bank on Wednesday showed that spending in this area resulted in a loss of 3.8 billion US dollars. $1.7 billion of this amount was allocated to the guarantee fund.
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