Citigroup is set to undergo a significant workforce reduction, with CFO Mark Mason announcing on Friday that 20,000 employees will be laid off over the next two years.
This decision follows the company’s report of a $1.8 billion net loss for the fourth quarter of 2023, marking its worst quarter in 15 years.
The bank anticipates that the reduction in headcount will result in long-term savings of $2.5 billion.
For the fourth quarter, Citigroup reported an earnings loss of $1.16 per share, significantly below the estimated loss of 11 cents per share, as per FactSet, CNN reported.
Various one-time costs contributed to the bank’s challenging results, including a $1.7 billion charge related to the regional banking crisis last spring, an $880 million loss in Argentina, and $800 million in restructuring costs linked to approximately 7,000 layoffs in 2023.
These layoffs are part of CEO Jane Fraser’s long-term initiative to streamline operations at the company and enhance profitability.
While acknowledging the disappointing results, Fraser expressed optimism that 2024 would be a “turning point year” for the country’s third-largest lender during a call on Friday morning.
Written by B.C. Begley
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B.C. Begley 