Citigroup is preparing to announce a new phase of employee layoffs slated for March, coming after the recent reduction of around 1,000 positions in January, according to individuals familiar with the bank's plans. These upcoming cuts are expected to predominantly involve senior-level staff such as managing directors across the firm’s multiple lines of business.
In efforts to safeguard roles amid the restructuring, some high-ranking managers have already been shifted internally to different divisions. Such strategic reassignments aim to maintain key personnel as the bank continues to trim its overall headcount.
While the magnitude and geographic distribution of the forthcoming layoffs have not been disclosed, sources indicate these reductions align with the ongoing comprehensive turnaround initiated by Citigroup’s Chief Executive Officer Jane Fraser. Since assuming her role in 2021, Fraser has focused on overhauling the bank’s cost structure, addressing regulatory issues, and advancing profit growth to bolster Citigroup’s competitive position within the banking sector.
This recent wave follows a marked decrease in Citigroup’s workforce from 240,000 employees at the beginning of 2022 to roughly 226,000 by the end of last year. Financial Chief Mark Mason highlighted in a recent earnings call that headcount is anticipated to continue diminishing through 2026, reflecting intentional expense management initiatives. Notably, Citigroup allocated approximately $800 million towards severance payments in the prior year as part of these adjustments.
Further illustrating Fraser's influence, she received a substantial $25 million equity grant in recognition of progress made on the bank’s strategic reforms and was appointed chair of Citigroup’s board in October. The restructuring efforts encompass both public announcements of large-scale layoffs and more discreet reductions, including a November reorganization, underscoring a methodical approach to workforce optimization.
These personnel changes coincide with regulatory relief from U.S. authorities. The Federal Reserve has lifted prior directives requiring improvements in the bank’s trading risk oversight, and the Office of the Comptroller of the Currency has retracted a proposed amendment related to a consent order originally imposed in 2020. Such regulatory developments may facilitate Citigroup’s operational flexibility moving forward.
Despite these internal changes, Citigroup’s stock performance in 2025 was robust, achieving a gain exceeding 65%, outperforming many of its banking peers and broader market indices. Additionally, the bank repurchased $13.25 billion in shares last year, though its stock has experienced a modest decline of 0.8% in early 2026.
Overall, Citigroup’s ongoing workforce reductions represent an integral component of a broader strategic plan aimed at streamlining the bank’s cost structure while navigating complex regulatory landscapes and enhancing shareholder value.