New York — Citigroup is moving forward with significant workforce reductions this week, cutting approximately 1,000 jobs as part of CEO Jane Fraser's ambitious restructuring initiative. This marks another wave in a multi-year transformation program designed to eliminate up to 20,000 positions by the end of 2026, affecting roughly 8% of the bank's global workforce.
As of September, Citigroup employed around 227,000 people worldwide. The latest reductions come amid a broader wave of corporate layoffs extending across technology, finance, and investment sectors.
Key Facts
• Citigroup is eliminating 1,000 positions this week as part of a comprehensive restructuring plan announced two years ago to cut 20,000 jobs by end of 2026
• CEO Jane Fraser has already overseen the elimination of more than 10,000 roles and expects continued headcount reductions driven by automation and artificial intelligence investments
• The reductions aim to deliver up to $2.5 billion in cost savings while streamlining management layers and improving operational efficiency
Fraser's leadership marks a significant shift in the bank's strategy. In an internal memo to roughly 200,000 employees, she emphasized that performance will be judged on results, not effort.
She stated that the bank must eliminate its "old, bad habits" and adopt a more commercially aggressive culture moving forward.
The transformation has already yielded remarkable results. Citigroup's stock surged 67% in 2025, making it the best performer among major U.S. banks.
Full-year revenues tracked toward $84 billion in 2025, the highest since 2010, with all five business segments hitting quarterly records in the last quarter.
Fraser was elected Chair of the Citigroup Board of Directors in 2025 and named Euromoney
signaling confidence in her restructuring strategy among industry peers.
The job cuts are intrinsically linked to technological advancement. Outgoing CFO Mark Mason indicated that headcount will continue falling as artificial intelligence tools and streamlined processes become more prevalent.
However, Citi plans to continue hiring top talent in critical areas like investment banking.
Citigroup joins other financial institutions in announcing significant workforce reductions. Meta plans to cut 10% of its Reality Labs workforce to redirect resources toward artificial intelligence projects.
Similarly, BlackRock announced it will eliminate approximately 250 employees, representing around 1% of its total workforce across various divisions.
These layoffs reflect broader industry trends as companies invest heavily in automation and AI technology. The rise in job cuts across multiple sectors throughout 2025 and into 2026 raises important questions about employment security and the future impact of technological innovation on labor markets.
Fraser has framed 2026 as a critical year for Citigroup's transformation. She argues that the painful cuts and technology investments are laying the foundation for stronger, more consistent returns that will help the bank compete more effectively with Wall Street rivals.
❝ We are not graded on effort. We are judged on our results. ❞ — CEO Jane Fraser in an internal memo to Citigroup employees
The transformation carries significant stakes for 2026. Citigroup must prove to investors that aggressive layoffs, substantial technology spending, and cultural changes can close its long-standing performance gap with competitors while maintaining employee morale and retaining critical talent.
Industry watchers note that Fraser's approach represents one of the most comprehensive restructuring efforts on Wall Street in recent years. The combination of cost reduction, technology investment, and cultural reset positions Citigroup to compete more aggressively in a rapidly evolving financial services landscape.
Staff and investors are now watching closely to see whether the transformation delivers on its promises of improved profitability and efficiency while successfully managing the human impact of substantial workforce reductions.
Do You Know?
Citigroup's "Project Bora Bora" restructuring program has already simplified the bank's management structure significantly. Since Fraser took the helm in 2021, the bank has undergone one of its most substantial overhauls, positioning it as a potential model for other financial institutions facing similar competitive pressures.
Key Terms
• Restructuring: A comprehensive organizational change designed to improve efficiency, reduce costs, and align company operations with strategic goals
• Headcount: The total number of employees working for a company at any given time
• Cost Savings: Reductions in operating expenses achieved through efficiency improvements, automation, or workforce reductions
• Automation: The use of technology and artificial intelligence to perform tasks previously done by humans, increasing operational efficiency
• Transformation Program: A multi-year initiative to fundamentally change how a company operates, including technology upgrades, process improvements, and organizational restructuring
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