A massive US bank is now cutting 20,000 jobs to save as much as $2.5 billion to boost the Wall Street giant’s lagging returns.
Firmwide expenses are expected to drop to a range of $51 billion to $53 billion over the medium-term, Citigroup said, without clarifying the exact timeframe.
In the meantime, though, the firm expects to incur as much as $1 billion in expenses tied to severance payments and Fraser’s broader overhaul of the bank.
Costs for the year should be in the range of $53.5 billion to $53.8 billion — a decrease from the $56.4 billion the firm spent in 2023.
“The fourth quarter was very disappointing,” Fraser said in the statement.
“Given how far we are down the path of our simplification and divestitures, 2024 will be a turning point.”
Fraser in September initiated the biggest restructuring of Citigroup in decades as she seeks to improve the bank’s returns.
She has said the moves will allow the bank to eliminate bureaucracy, slimming it down from 13 management layers to just eight.
Fraser has also said the overhaul would help her boost a key measure of profitability known as return on tangible common equity to at least 11% by 2027 at the latest.
She reiterated that medium-term guidance on Friday.
The 20,000 roles that Citigroup will eliminate include jobs cut as part of the restructuring as well as dismissals that would have occurred anyway, reports Bloomberg.
This comes as a major blow to employees at the bank.
Massive bank layoffs have also been occurring within Wells Fargo, JPMorgan, PNC, and others.
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Also Read: A Massive Bank Now Closes Several Branches in Florida
Other Banking News Today
A massive bank will now close locations nationwide to consolidate its branch network, part of a $750 million cost-cutting effort.
Truist CEO Bill Rogers announced that 72 locations would be affected, or 3.5% of its branch network, by March.
The firm said it sent customers a letter in mid-December explaining the branch closures and identifying the next nearest location at which they can bank.
A Truist spokesperson told American Banker that nine branches are set to close in North Carolina and seven in the Washington, D.C., metropolitan area.
The firm is expected to shutter branches in Alabama, Georgia, Kentucky, Maryland, North Carolina and West Virginia, the publication reported.
The Atlanta Business Chronicle reported that the lender will close eight branches in Georgia, including four in Atlanta.
“For the vast majority of branches that are closing, clients will have access to a branch about two and a half miles away on the average,”
Brian Davis, director of consumer and small business banking communications, said in a statement.
“In response to our clients’ evolving preferences, these decisions create additional opportunities for investment in our digital capabilities.”
Following the closures, Truist will operate 1,900 branches and 2,900 ATMs, Davis said.
“We understand that in-person service and caring conversations are still important to many of our clients,” Davis said.
Truist CEO Bill Rogers announced plans to consolidate the bank’s branch network in September, part of the firm’s efforts to shave $750 million off gross costs over the next 12 to 18 months.
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Also Read: The US Treasury Direct is Now Freezing Customer Accounts
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