The US bank has been trying to address profitability challenges by restructuring. This includes laying off thousands of employees and flattening its management structure. The cut affects divisions from Shanghai and Dalian, north-eastern China, that offer IT services to Citi businesses in over 20 countries.
The bank mentioned its latest moves have managed to drive efficiency in the way it works, in its workforce, and across its global real estate footprint. Citi noted that the cut would not affect its Chinese subsidiary’s banking operations based in Shanghai, or the remaining tech staff based in Guangzhou.
The laid-off positions will be moved to other countries, without providing specific locations or figures, to be closer to the businesses and products they support. This process is projected to be completed by the start of Q4 2025.
The workers that were let go were offered a severance package worth a month’s pay for every year worked at the company, and a bonus of up to six months’ pay if they signed the necessary agreements.
The bank continues to pursue the creation of a wholly owned securities and futures company in China as foreign investment banks have pushed to fully own their operations in the country in recent years. However, the bank faced difficulties economically and geopolitically.
The lay-off is one of the largest among foreign financial groups in China in the last years, reflecting an emerging trend of similar cuts when it comes to technology. Fidelity International laid off about 500 tech jobs in Dalian, and IMB mentioned in 2024 that it would fire more than 1000 workers in China.This follows a broader reduction in headcount following a period of weak deal flow and a slowing domestic economy. Western banks minimised their workforce at Chinese subsidiaries by 13% in 2023.
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