Citigroup Layoffs: America's leading bank Citigroup Inc has planned to lay off more than 20,000 people in the next two years. The bank has taken this decision after the worst quarterly results in 14 years. This American bank has planned to cut its total workforce of 2,39,000 people by 20,000. In such a situation, the total number of employees working in the bank may reduce by 8 percent by the year 2026.
There will be a big reduction in expenses due to layoffs
According to the report published in Moneycontrol, this retrenchment plan will cost Citigroup Inc. $1 billion. This money will be spent on additional salary and facilities to the laid-off employees. However, the overall expenses of the bank will be less. Citigroup has been busy reorganizing its business since the new Chief Executive Officer Jane Friesen took charge at the bank. The bank is trying to reduce its expenses so that its profits can be increased.
The bank had estimated on Friday that its expenditure this year could be between 53.5 to 53.80 billion dollars, which is slightly less than last year. Earlier, the total expenditure of the bank in 2023 was around $56.40 billion. Citigroup may plan to save $2.5 billion in the next two years by laying off 20,000 employees.
Disappointing results in the quarter
Citigroup, while releasing the results for the October-December quarter, had said that it had suffered a loss of $1.8 billion during this period, which has been the most disappointing results of the bank in the last 14 years. Compared to the same quarter last year, the bank's revenue has fallen by 3 percent to $17.40 billion. After this result, the bank's Chief Executive Officer Jane Freshon said that The year 2023 has not been as expected and 2024 is very important for us. The bank is going to do a large-scale restructuring in the next two years, through which a total savings plan of $2.5 billion has been made.
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