Citigroup to cut 20,000 jobs by 2026 after ‘very disappointing’ quarter as it posts loss

“This story is about the restructuring and the announced layoffs,” Wagner said. “On Wall Street, we love this — we are vicious capitalists.” 

In the company’s fourth-quarter earnings release Friday, Chief Executive Jane Fraser said that while the quarter “was very disappointing due to the impact of notable items,” the bank made “substantial progress” in executing its reorganization plan.

Citi’s stock moved up by 1% to close Friday at $52.62. The stock’s price has fallen 3.2% in the past week but has risen 9.5% in the past month.

Of the 20,000 total job cuts, 7,000 were made in the fourth quarter but were not reflected in the bank’s total head count as of Dec. 31. Direct staff fell by 1,000 to 239,000 as of the end of 2023.

Citi Chief Financial Officer Mark Mason said on a call with reporters that the changes “are tough on morale,” but added that the bank has been clear on its strategy and that the moves will help its growth down the road.

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Citi posted a fourth-quarter net loss, including all items, of $1.8 billion, or $1.16 per share. In the year-ago period, the bank reported net income of $2.5 billion, or $1.16 per share.

Excluding $2 per share in one-time costs, Citigroup earned 84 cents per share, well ahead of the FactSet consensus estimate of 11 cents a share.

Breaking out the impact of divestures, Citi’s revenue rose by 2% year over year, to $18.37 billion. Wall Street analysts estimated revenue of $18.72 billion.

Citi said its revenue was boosted by gains in its services, U.S. personal banking and investment banking, while revenue fell for its markets and wealth businesses.

Looking ahead, Citi said it expects 2024 revenue in the range of $80 billion to $81 billion, ahead of analysts’ $79.5 billion estimate.

Cost items in the quarter included $1.76 billion for the FDIC’s special assessment on the failure of Silicon Valley Bank and other banks last year, as well as a reserve build of $1.3 billion tied to transfer risk in Russia and Argentina, plus a restructuring charge of about $880 million.

Citigroup released its results on a busy day for bank earnings, with JPMorgan Chase & Co.
JPM,
-0.66%,
Wells Fargo & Co.
WFC,
+1.22%
and Bank of America Corp.
BAC,
+0.68%

Also read: JPMorgan Chase’s net income drops but beats analyst estimates

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Also read: Bank of America’s stock slides 2% as earnings almost halve from a year ago