Citi Announces Major Tech Workforce Reduction in China
Citigroup has revealed plans to eliminate approximately 3,500 technology positions in China, primarily within its information technology services unit. The job cuts are scheduled to be completed before the fourth quarter of 2025.
Details of the Reduction
The affected roles are mainly involved in software development, testing, maintenance, and operational support serving Citi's global operations. While some positions will be eliminated, others are expected to be relocated to Citi’s technology centers in different countries, though the company has not specified the exact locations or numbers.
Context of Global Restructuring
This move is part of a broader initiative by Citi to streamline operations and reduce costs worldwide following a workforce reduction plan announced in January 2024. The bank aims to cut about 10% of its global staff, equating to around 20,000 employees. Citi has already undertaken similar downsizing in markets including the U.S., Indonesia, the Philippines, and Poland.
Leadership and Strategic Goals
Under the leadership of CEO Jane Fraser, Citi is executing a strategic plan focused on enhancing profitability and regaining investor confidence after years of trailing peer banks in the U.S. This cost-cutting effort aligns with those strategic objectives.
Industry-Wide Cost Pressures
Citigroup’s job cuts in China coincide with a broader trend among global financial institutions addressing economic headwinds. Rising concerns over slowing trade activities and ongoing uncertainties stemming from geopolitical factors, including trade tensions, have put additional pressure on banks to reduce expenses.
Other regional players have also announced restructuring plans. For example:
- Hang Seng Bank in Hong Kong is restructuring its business and eliminating roughly 1% of its core workforce to enhance efficiency.
- HSBC Group aims to cut costs by $1.8 billion by the end of 2026 as part of a larger expense reduction program.
Several Wall Street banks, including JPMorgan Chase and Bank of America, have initiated annual reviews to terminate underperforming employees, with Bank of America recently cutting 150 positions in its investment banking division.
Challenges in the Chinese Market
The banking sector in Hong Kong and mainland China faces rising non-performing loans, largely due to significant exposure to the struggling Chinese property market. This has contributed to the urgency among lenders to recalibrate operations and reduce costs.
