Citigroup has announced significant staff cuts, eliminating 20,000 roles, as part of a savings plan that could reach $2.5 billion.
CEO Jane Fraser’s measures to improve returns foresee a reduction in corporate expenses in a range between $51 billion and $53 billion over the medium term.
In the meantime, however, Citigroup expects to incur charges of up to $1 billion related to severance payments and the bank’s broader restructuring.
The savings plan helped mask a disappointing fourth quarter, in which fixed-income traders posted their worst performance in five years, with a 25% drop in revenue to $2.6 billion.
“The fourth quarter was very disappointing,” Fraser said. “Given the advanced stage of our simplification and divestment journey, 2024 will be a turning point.”