A popular US bank now reaches a whopping 7,000 layoffs, up 2,000 from its original plan to cut 5,000 jobs.
Job cuts tied to Citi Bank’s reorganization have now totaled 7,000, up from the 5,000 the bank initially targeted, CEO Jane Fraser confirmed Friday.
Last month marked the end of the Citi’s massive overhaul, Fraser said during a first-quarter earnings call, leaving the bank “nimbler” and with “frankly, much less bureaucracy and needless complexity.”
Ultimately, about 7,000 positions were cut – more than the bank initially outlined – generating a whopping $1.5 billion of annual expense savings, she said.
The simplification of the business included eliminating layers of management and cutting a number of committees in certain geographies, among other aspects.
“I’m much closer to the businesses and the clients,” Fraser said.
“It makes it much easier for [CFO] Mark [Mason] and I and the rest of the team to run the bank like an operator versus the head of the company.”
During the quarter, Citi wrote down $225 million in restructuring charges mainly related to the reorganization and $258 million of repositioning costs largely related to “efficiency efforts,” Mason said.
In total, the bank has incurred about $1 billion in restructuring costs over the last two quarters, Mason said.
He added that Citi will continue to invest in its tech modernization “to ensure we continue to get it right.”
The CFO also noted Citi executives expect the lender’s capital requirements to drop over time based on the reorganization and the benefits envisioned with Citi’s transformation.
Citi reported net income of $3.4 billion for the quarter, on revenues of $21.1 billion, according to an earnings release.
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Also Read: Three Massive Bank Branches Are Now Closing in California
Other Economy News Today
A massive US bank now closes more branches in Ohio according to fresh data from the Office of the Comptroller of the Currency.
Last month, the Office of the Comptroller of Currency reported that Park National Bank closed a total of ten locations in Ohio in just one week.
They included:
- 898 East St, Athens
- 2810 Maysville Pike, Zanesville
- 220 E. State St, Newcomerstown
- 1274 Hills Road N, Pickerington
- 205 North Seltzer St, Crestline
- 2148-G Eagle Pass, Wooster
- 800 North Main St, Celina
- 8 West Maple St, North Lewisburg
- 2035 Dayton Lakeview Rd, New Carlisle
- 1176 West Main St, Tipp City
Now the OCC has released an updated roster of the following US Bank branches closing in Ohio this year:
- 350 Euclid Ave, Cleveland
- 38 North Broadway St, Farmerville
- 64 North Main St, Cedarville
- 123 North Reed Ave, Malvern
- 85 West Main St, Shelby
Last year, Crains Cleveland reported that Ohio outpaced the national average for bank branch closures.
In Ohio, 4.8% of branches were closed between 2020 and 2021, while 4.3% shuttered between 2021 and 2022.
This compares with the national average of 3.2%.
The closure of bank branches has led industry experts to believe low income communities will be left with ‘bank deserts’.
“If the trend of current bank branch closings continues, there may be no bank branches left in 10 years,” reported TheStreet.
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Also Read: A Massive Grocery Chain With 400 Stores Is Now Closing
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