Painful bank layoffs are now starting to increase as Citigroup CEO announces its new round of job cuts this year.
The bank confirmed during the second quarter layoffs (1,600 in the second quarter) will push the total job cuts to 5,000 this year.
“CEO Jane Fraser announced a major management reorganization on Wednesday that will result in more job cuts and give her more direct oversight over its businesses as she seeks to simplify the bank’s structure.
The heads of the bank’s five businesses will now report directly to Fraser. They include: Shahmir Khaliq, who runs services, Andrew Morton in markets, Peter Babej for investment and corporate banking on an interim basis, Gonzalo Luchetti in U.S. consumer banking, and Andy Sieg in wealth when he joins the company later this month,” per Reuters.
“We are making bold decisions to meet our commitments to our shareholders,” Fraser, 56, said in a statement.
“The latest changes have already eliminated 35 committees”, Fraser said, citing an example of efforts to reduce bureaucracy.
The sweeping reorganization is another step in Fraser’s strategy to improve profits and streamline the bank since she took the helm in 2021.
Although Citi has sold businesses and is working on fixing regulatory problems, its stock price has lagged, reports Reuters.
“We have taken hard, consequential, tough decisions here,” Fraser told investors.
“They are not going to be universally popular within our bank.
It’s going to make some of our people very uncomfortable. I am absolutely fine with that … It is absolutely the right thing to do for our shareholders.”
Job cuts are expected, but the bank did not estimate the number of positions being eliminated or the financial impact, sources familiar with the matter said.
Wells Fargo also said that it could see its headcount decline further as it aims to improve efficiency, Chief Financial Officer Mike Santomassimo said on Tuesday.
The bank has been trimming its workforce since the third quarter of 2020. It has already reduced its employee base by nearly 40,000 and cuts are likely to continue, Santomassimo said.
“I do think that there’s more to do, and you’ll see that through the headcount number,” he added.
Also Read: Thousands Now Affected by Massive Layoffs in Illinois
Other Layoff News Today
Layoffs in California this year have now exceeded last year’s numbers according to the latest data by the EDD.
“11,238 jobs have been cut in California since July 1, 2023.
This is tracking ahead of last year’s period when just under 10,000 jobs were cut in California.
From July 1, 2022, to June 30, 2023, there were a total of 90,693 employees laid off in California,” reports Ash Jurberg.
Several thousands of Californians suffered from job losses in August as more businesses announced layoffs throughout the month.
Layoffs in California surpassed layoffs in Florida significantly for the month of August.
Both California and Florida had the most layoffs in Yellow Corp., an American transportation holding company headquartered in Nashville, Tennessee.
Below are the businesses that filed a WARN act with the California Employment Development Department advising of upcoming layoffs.
August Layoffs in California 2023
- Gillette Citrus. 93 jobs cut in Dinuba.
- Thermo Fisher Scientific 106 jobs cut in Carlsbad and San Diego.
- Surgalign Spine Technologies. 99 jobs cut in San Diego.
- Circle C Ranch. 14 jobs cut in Stockton.
- Tattooed Chef. 234 jobs cut in Los Angeles and Paramount.
- G&C Staffing. jobs cut in San Jose.
- Niantic 164 jobs cut in Los Angeles and San Francisco.
- Hyatt Centric. 111 jobs cut in Sacremento.
- GXO Logistics. 61 jobs cut in Ontario.
- Valiant Integrated Services. 137 jobs cut in Travis.
- Crunchbase 63 jobs cut in San Francisco.
- Perfect Day. 75 jobs cut in Berkely.
- Hyperloop Technologies. 3 jobs cut in Los Angeles.
- Accesso 111 jobs cut in Valencia.
- NRI USA. 164 jobs cut in Chino.
- Bank of the West. 248 jobs cut in San Ramon and San Francisco.
- Macy’s Eagle Rock Plaza Store. 74 jobs cut in Los Angeles.
- Microsoft. 40 jobs cut in Mountain View.
- Intel Corporation 315 jobs cut across various locations.
- Illumina. 154 jobs cut in Hayward and San Diego.
- Yellow Corporation. 2,671 jobs cut across various locations.
- Cardinal Glass. 29 jobs cut in Los Angeles.
- Peloton Interactive Inc. 21 jobs cut in Perris.
- Tempo Automation Holdings. 58 jobs cut in San Francisco.
- SPT Microtechnologies. 67 jobs cut in San Jose.
- Corteva Agriscience. 31 jobs cut in Pittsburg.
- Fish Market Restaurants. 140 jobs cut in Palo Alto, San Matteo, San Francisco
- FibroGen. 104 jobs cut in San Francisco
- Vionic Consumer Care Operations. 6 jobs cut in San Rafael
- Accenture. 240 jobs cut in Fremont.
- Intense Lighting. 90 jobs cut in Anaheim.
- Blowfish. 20 jobs cut in Culver City.
- Charles River Laboratories. 55 jobs cut in San Francisco.
- Gemological Institute of America, Inc. (GIA) 151 Carlsbad.
- Petco Animal Supplies Stores 54 jobs cut in San Diego.
- Codexis. 59 jobs cut in Redwood City.
- CSL Vifor. 85 jobs cut in Redwood City.
- Headway Technologies. 90 jobs cut in Milpitas.
- Langmuir Systems. 16 jobs cut in Lakeside.
- Pizza Antica Mill Valley. 43 jobs cut in Mill Valley.
Also Read: Here Are The Bank Branches JPMorgan Chase Is Now Closing
September California layoff notifications
Under the Worker Adjustment and Retraining Notification Act, an employer with more than 100 full-time workers must provide a 60-day notice before laying off 50 or more people at a single site.
Below are the businesses that have filed a WARN act with the California Employment Development Department in September advising of upcoming layoffs.
- Tri-City Medical Center. 96 jobs cut in Oceanside.
- Herbalife International of America. 12 jobs cut in Los Angeles.
- Alchemee. 12 jobs cut in Santa Monica.
- Herbalife International of America, 85 jobs cut in Torrance
- Visalia Citrus Packing Group. 34 jobs cut in Orange Cove
- Dabico Airport Solutions. 25 jobs cut in Cypress
- Visalia Citrus Packing Group. 31 jobs cut in Woodlake
- Mercy Medical Transportation 58 jobs cut in Ramona
- Planet Labs PBC. 85 jobs cut in San Francisco
- Johns Manville. 54 jobs cut in Willows
- ContextLogic Inc.152 jobs cut in San Francisco
Despite rising layoffs in California and other states, banks reiterate that the probabilities of a recession have come down significantly.
However, most Americans would differ.
Are we headed towards a recession? Do you know anyone who’s lost their job? Leave your thoughts in the comment section down below.
Also Read: A New Wave of Bank Closures is Hitting California
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