Citigroup’s Big Layoff Move: 20,000 Jobs on the Chopping Block

Letting Go: 20K Employees to Hit the Door

So, Citigroup’s dropping a bomb – they’re giving the boot to 20,000 employees in the next couple of years. Mark Mason, the CFO, spilled the beans on Friday after the bank coughed up a net loss of $1.8 billion in the last quarter of 2023. That’s their worst quarter in 15 years, and it’s safe to say it rattled a few cages.

Bitter Pills: $2.5 Billion in Savings

To soften the blow, Citigroup’s expecting to save a cool $2.5 billion in the long run with this massive employee reduction. The idea is to trim the fat, tighten the ship, and ride out the storm.

Earnings Bomb: $1.16 Loss Per Share

Now, here’s the kicker – they reported a whopping loss of $1.16 per share for the fourth quarter. Way off the estimated loss of 11 cents per share, according to the bean counters at FactSet. There were a bunch of one-time costs playing havoc with their numbers, including a $1.7 billion hit from the regional banking mess last spring, an $880 million loss in Argentina, and $800 million in costs for booting 7,000 folks in 2023.

The Big Picture: Fraser’s Cleanup Crew

This isn’t just a random layoff spree; it’s all part of CEO Jane Fraser’s grand plan. She’s been on a mission to cut the red tape at Citigroup and jack up the profits that have been snoozing. According to Fraser, 2024 is going to be the year when things take a U-turn for the country’s third-largest lender. She called the Q4 results “very disappointing” but threw in some hope for the future.

Tough Times, Tough Calls

Mason, the CFO, wasn’t beating around the bush. He admitted that when companies go through this kind of shake-up, morale takes a hit. No kidding! But he also pointed out that Citigroup has been clear about its game plan and the momentum they’re gunning for.

Shuffling the Deck: 40,000 More Bites the Dust

It’s not just the 20,000 getting pink slips. Citigroup is also shedding 40,000 employees from its Mexican retail unit, and they’re doing it with an IPO twist. So, the total headcount is getting a major chop – from 240,000 to around 180,000. That’s no small rearrangement.

Big Bucks on Severance: $1 Billion Tag

This downsizing extravaganza won’t come cheap. Citigroup is getting ready to drop up to $1 billion on severance pay and other costs tied to their fancy restructuring plan. A pretty penny, but it’s the cost of doing business when you’re trying to restructure the whole shebang.

Global Shake-Up: No Numbers, Just Vibes

Citigroup is keeping it hush-hush on the numbers by region. A spokesperson made it clear – these layoffs are going global. So, no region is safe from the workforce shake-up.

Jane’s Plan in Motion

CEO Jane Fraser didn’t drop this layoff bomb out of the blue. She spilled the beans last September about her grand restructuring plans. It’s all about shuffling leadership, getting folks accountable, and giving the share price a kick in the pants. To do that, she figured a leaner staff was in order.

Stock Woes: Down 1.2% and Counting

As expected, the news isn’t doing wonders for Citigroup’s stocks. They’re down by 1.2% in afternoon trading. But hey, it’s the stock market – always a rollercoaster ride.

So, there you have it – Citigroup’s making big moves, cutting jobs left and right, and hoping it’ll be a game-changer in the long run. It’s a tough call, but in the corporate world, tough calls are just part of the game.