As Citigroup Slashes Jobs, Should You Buy, Sell, or Hold the Dividend Stock Yielding 2%?

Group 1: Company Performance - The six major U.S. banks are expected to achieve their second-highest annual profit ever at $157 billion, driven by increased trading activity and dealmaking [1] - Citigroup's stock has surged nearly 60% over the past 52 weeks, reflecting strong market performance [1] - For Q4 2025, Citigroup reported revenue of $19.9 billion and net income of $2.5 billion, with a CET1 Capital Ratio of 13.2%, which is 160 basis points above the regulatory requirement [5] Group 2: Strategic Changes - Citigroup plans to cut 1,000 jobs this week as part of a larger strategy to reduce 20,000 roles by the end of 2026, aiming to trim costs and improve returns [2] - The job cuts are expected to support margins in 2026 and beyond, indicating a focus on creating a more efficient organization [2] Group 3: Market Outlook - A potential rate cut is anticipated in Q1 2026, which may lead to credit growth and support Citigroup's core business [3] - Strong dealmaking activity is expected in the Asia Pacific region for 2026, particularly in China and India, which is likely to ensure steady growth momentum [7] Group 4: Business Segments - Citigroup operates through five business segments: Services, Markets, Banking, U.S. Personal Banking, and Wealth, with over $5 trillion in financial flows daily [4] - The bank has exited 14 international consumer markets while investing in new products, digital assets, and AI to enhance innovation and efficiency [6]