Citigroup to cut 20,000 US employees

Citigroup will lay off 20,000 employees over the next two years, CFO Mark Mason said Friday. The reduction comes after the company reported a $1.8 billion net loss for the fourth quarter of 2023, its worst quarter in 15 years.

The bank reported a huge earnings loss of $1.16 per share for the fourth quarter, far below estimates of a loss of 11 cents per share, according to FactSet.

Citi said there were several one-time costs that impacted its results. These included a $1.7 billion charge the bank had to pay related to the regional banking crisis last spring, an $880 million loss in Argentina and $800 million in restructuring costs.

These layoffs are part of Citi CEO Jane Fraser’s years-long effort to cut red tape at the company and boost lagging profits. Fraser called 2024 a “turning point year” for the country’s third largest lender on a call Friday morning.

The bank also said it plans to shed an additional 40,000 employees from its Mexican retail unit through an IPO, bringing the total headcount for the company to around 180,000 from 240,000.

Over the next few years, the bank said it expects to pay up to $1 billion in severance pay and reorganization costs related to its planned restructuring.

Shares of Citi were down 0.8% in late-morning trading.

This story is developing and will be updated.