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Citigroup to Cut up to 200 IT Jobs in China to Enhance Risk Management
CCiti(C) ZACKS·2025-05-19 16:06

Core Viewpoint - Citigroup Inc. is planning to cut up to 200 IT contractor jobs in China as part of a global recruitment strategy aimed at improving risk management and data governance [1][2]. Group 1: Job Cuts and Organizational Changes - Citigroup was fined 136millionbyU.S.regulatorsinJuly2024forinadequateprogressinresolvingdatamanagementissues,promptingtheITrestructuringplan[2].−Approximately100ITstaffatCitigroupServicesandTechnologyChinawereinformedthattheircontractswillnotberenewed,withanother100expectedtoreceivelayoffnoticessoon[3].−ThereductionofITcontractorjobsinChinaisnotexpectedtoimpactCitigroup′soverallbusinessstrategyoritscommitmenttolocalandglobalclients[4].Group2:BroaderRestructuringStrategy−Citigroupisundergoingamajororganizationaloverhaul,planningtocut20,000jobsgloballyby2026tostreamlineoperationsandimproveefficiency,withexpectedannualizedsavingsof136 million by U.S. regulators in July 2024 for inadequate progress in resolving data management issues, prompting the IT restructuring plan [2]. - Approximately 100 IT staff at Citigroup Services and Technology China were informed that their contracts will not be renewed, with another 100 expected to receive layoff notices soon [3]. - The reduction of IT contractor jobs in China is not expected to impact Citigroup's overall business strategy or its commitment to local and global clients [4]. Group 2: Broader Restructuring Strategy - Citigroup is undergoing a major organizational overhaul, planning to cut 20,000 jobs globally by 2026 to streamline operations and improve efficiency, with expected annualized savings of 2-2.5 billion [5]. - The bank is focusing on growth in core businesses while shrinking international operations, including the separation from its institutional banking business in Mexico and divesting its onshore consumer wealth portfolio in China to HSBC [6]. - Citigroup is also winding down its Korean consumer banking operations and preparing for an IPO of its consumer banking and small business operations in Mexico [7]. Group 3: Market Performance - Citigroup's shares have gained 11.9% over the past six months, outperforming the industry's growth of 7.2% [8].