Citigroup eliminates hundreds of positions, including in investment banking and mortgage divisions
- ByStartupStory | March 4, 2023
Citigroup Inc. is reducing its workforce by eliminating several hundred positions, including some in its investment banking unit.
According to anonymous sources, the cuts represent less than 1% of the company’s total workforce of 240,000 employees. Other areas of the company affected include its operations and technology group and its mortgage-underwriting division in the United States.
According to the sources, the job reductions at Citigroup are a regular part of the company’s business planning and not the result of a broad mandate for managers to cut staff. Different divisions within the company are facing unique factors that have led to the decision to cut positions.
Citigroup’s decision to cut jobs follows similar moves by other major banks. JPMorgan Chase & Co. recently cut hundreds of mortgage employees, while in January, Goldman Sachs Group Inc. announced one of its largest job reduction efforts, which aimed to eliminate thousands of positions throughout the company.
While facing a slowdown in deal-making across the industry, Citigroup’s investment banking division is among the areas affected by the job cuts. Last year, the business saw a 53% decrease in revenue, and analysts are anticipating further declines in the first quarter of this year.
Meanwhile, the reductions in Citigroup’s mortgage unit, which is primarily located in O’Fallon, Missouri, follow previous staff dismissals in the same division last year. The decrease in mortgage demand in recent months is attributed to rising prices and other factors.
According to Chief Financial Officer Mark Mason’s statement in January, “Citigroup is currently seeking to fill certain roles in order to execute its strategy, while also adjusting its pace and restructuring where necessary given the current business environment. The company is constantly evaluating its talent pool to ensure that it has the appropriate individuals in the correct positions”.
Despite the job reductions, Citigroup is still recruiting and forming teams with the specific goal of addressing two consent orders issued by the Office of the Comptroller of the Currency and the Federal Reserve in 2020. These new hires have contributed to a significant increase in the company’s overall headcount over the past two years, with an additional 30,000 employees being added during that period.
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