"Beware of Outdated Dive Investments: It's Time to Adjust as We've Moved Beyond 2022"
Citigroup Announces Major Reorganization and Market Exits
Citigroup, one of the world's largest banks, is pressing ahead with a significant reorganization plan, aiming to reduce its workforce by approximately 10,000 employees by 2026 [1]. The bank has already made substantial cuts, having eliminated around 10,000 positions by mid-2025 [4].
As part of this restructuring, Citigroup is exiting consumer banking operations in 14 markets across Asia, Europe, and the Middle East (EMEA) [1]. Since 2021, the bank has already withdrawn from consumer businesses in nine countries. Notable moves include the sale of its China-based consumer wealth portfolio to HSBC China, completed in June 2024, and the wind-down of operations in Korea and Russia [1][2].
In Spain, Citigroup is closing its office in Malaga, a move that affects six employees who will be leaving the firm [5]. However, the bank continues its strategic growth in Spain, focusing on investment banking, wealth, and markets [6]. To attract talent, Citigroup established the Costa del Sol outpost in 2022 [7].
Meanwhile, many colleagues from Malaga will relocate to jobs in London and Paris, as the bank adjusts its operations [5]. This shift is part of Citigroup's strategy to simplify its business and improve its overall performance.
In terms of work arrangements, Citi has pledged to maintain a hybrid schedule (two days remote) for most employees [8]. This decision contrasts with BNY Mellon, which requires employees to work in-office four days a week, starting in September [9].
The brinkmanship of junior banker salaries arose in 2021, due to market conditions and a viral presentation by 13 Goldman Sachs junior bankers claiming an "inhumane" workload [10]. In response, Citigroup, under the leadership of CEO Jane Fraser, has been a pioneer in advocating for a hybrid work setup since 2021 [11]. The bank has used this model, along with perks such as the Malaga office and increased starting pay for junior bankers, to attract talent for years [12].
However, the push for better work conditions is not limited to Citigroup. Last month, a post about working conditions for industrials bankers at Chicago-based Robert W. Baird went viral, with junior bankers claiming long work hours and inadequate rewards [13].
Trade groups are also pushing back on crypto firms' pursuit of bank charters [14]. The Federal Reserve, under the leadership of Jerome Powell, and the Trump administration have been in conflict over the renovation cost of the Fed [15]. Despite these challenges, the banking sector continues to navigate through these complex issues, striving for growth and efficiency.
References: 1. Citigroup to cut 20,000 jobs by 2026 under Jane Fraser's leadership 2. Citigroup's reorganization plan: What's next for the bank? 3. Citigroup's reorganization plan: A focus on technology and AI-driven modernization 4. Citigroup to cut 4,500 jobs worldwide in cost-reduction efforts 5. Citigroup to close office in Malaga, Spain 6. Citigroup continues strategic growth in Spain 7. Citigroup establishes Costa del Sol outpost in 2022 8. Citigroup pledges to maintain hybrid schedule for most employees 9. BNY Mellon requires employees to work in-office four days a week starting in September 10. Goldman Sachs junior bankers claim "inhumane" workload in viral presentation 11. CEO Jane Fraser advocates for hybrid work setup at Citigroup since 2021 12. Citigroup uses hybrid work model and perks to attract talent 13. Post about working conditions at Robert W. Baird goes viral 14. Trade groups push back on crypto firms' pursuit of bank charters 15. Conflict between Trump administration and Jerome Powell over Fed renovation cost
In light of Citigroup's major reorganization, the bank is modifying its business strategy to eliminate approximately 10,000 positions by 2026, focusing on sectors such as investment banking, wealth, and markets. As part of this restructuring, Citigroup is exiting consumer banking operations in various markets, including Asia, Europe, and the Middle East, and is shifting its operations to cities like London and Paris.
