Citi logged about $800 million in severance expenses in the first half of the year and may set aside more for the second half, executives said Tuesday.
The New York-based lender had about 219,000 employees as of the second quarter, down about 5% from the year-earlier quarter (230,000 employees), and about 2% from the first quarter (224,000), according to a second-quarter earnings presentation.
“We may look at accelerating some of the structural efficiency actions and, in that case, take more severance in the second half,” Citi CFO Gonzalo Luchetti said during a conference call with analysts, declining to provide more detail. “If we see opportunities, we may do a bit more than we originally envisioned.”
10 replies (most recent on top)
@pz You're not wrong but I find this hilarious. 10 years ago they moved most of KYC/AML to Costa Rica. Then poof, 5 years later get rid of all those people and moved it back to the US. Now here we are again offshoring. I love how Citi is offshoring everything and Trump is drooling all over it. Another example of brainwashed trump supporters thinking he is supporting US citizens. He doesn't. He supports Oligarchs who let him in on stock bumps no matter the country.
Jane the RiFFer strikes again. Even investors are growing suspicious at the rate of job cuts. AI won't solve the bank's problems. This bubble is going to burst and the bank will have to hire back SME's that were let go. I've seen this cycle over and over (minus the AI part).
Costa Rica adding many US based jobs. Check the job board. They are posting positions daily and it was reported Citi is increasing staff in 2026 and 2027. I am on one of the teams impacted. Just a matter of time for all jobs on my team to move. I estimate 18 months tops for a full transfer of all positions including mine C14. Seems they are keeping the current job levels as well.
But they are hiring from body shops!! In the name of AI, let's fire all hardworking employees and hire poor quality contractors. This is getting worse. Hire everyone, everywhere except Citizens and in offshore locations.
@aa
unless we have headcount numbers by region or location (last time I checked 10K report, it had no such info) it it's difficult to figure out how this all unravel. there is no single resource summarizing headcount reductions, be that due to sale of Russian operations (-800 heads) or unwinding Poland , China, Korea or whatever else C is selling, either. not even AI can do such a summary.
I am seeing some unreal number of new team members in Mexico and Costa Rica. This is on top of most teams I have worked with within last 4 years moving over 50% of jobs to India.
my expectations is that we all can easily see - 10-20% in the US and UK before 2Q27
@aa 2.5 years by my count
@ag nope. It’s remarkable after 3 years of Bora Bora that you can’t grasp that.
@ag No it isn't.
Banamex spinoff included in that
So 9k more to go by EOY to meet the original target of 20k FTE by 2027. That's a lot in 5 mos given it took them a year and a half to cut 11k.