Citigroup to trim less than 1pc of workforce

Business | 15 Sep 2020 2:33 pm

Citigroup will resume job cuts starting this week, joining rivals such as Wells Fargo & Co. in ending an earlier pledge to pause staff reductions during the coronavirus pandemic, Bloomberg reports.

The cuts will affect less than 1 percent of the global workforce, the bank said Monday in a statement. With recent hiring, overall headcount probably won’t show any drops, Citigroup said.

The reductions will come as Citigroup is facing a likely revenue drop and another increase to loan-loss reserves this quarter as the pandemic drags on, as well as years of expenses to improve risk controls. The Office of the Comptroller of the Currency and the Federal Reserve are weighing public reprimands of the firm because of continued deficiencies in its infrastructure and control functions, people familiar with the matter said earlier on Monday. “The decision to eliminate even a single colleague role is very difficult, especially during these challenging times,” Citigroup said in the statement. “We will do our best to support each person, including offering the ability to apply for open roles in other parts of the firm and providing severance packages.”

The bank said it has hired more than 26,000 people this year, and over one-third of those jobs were in the U.S. The lender had roughly 204,000 employees at the end of the second quarter.

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