Citigroup has announced a reduction of 3,500 jobs in China as part of a broader strategy to optimize costs in response to economic challenges.
Job Cuts in China
Citigroup plans to cut 3,500 jobs in its Shanghai and Dalian centers, primarily affecting positions in information technology, including software development and testing. The bank noted that some roles may be relocated to other technology hubs, although specific details regarding the locations and number of transferred positions have not been disclosed.
Citigroup's Global Cut Plan
The cuts in China are part of a global strategy announced by Citigroup in January 2023, aiming to reduce 10% of its global workforce, approximately 20,000 employees. CEO Jane Fraser noted that the goal is to simplify operations to increase profitability and regain competitiveness. Citigroup has already implemented similar workforce reductions in the United States, Indonesia, and Poland.
Industry-Wide Trends in Banking
Other banks, like Hang Seng Bank, have begun implementing cuts as well. Hang Seng Bank, a subsidiary of HSBC, announced a restructuring that will affect about 1% of its core staff for substantial cost savings. Experts suggest that such measures are driven by deteriorating global economies and rising non-performing loans in China’s property sector. Major American banks like JPMorgan and Bank of America have also begun performance reviews resulting in job cuts.
The job cuts at Citigroup and other financial institutions underscore the current economic difficulties faced by companies in a climate of global economic pressure, highlighting the need for cost optimization.
