New York-based Citigroup Inc. is pressing ahead with workforce cuts into 2026, signaling no letup in Chief Executive Jane Fraser’s multi-year drive to slash expenses and sharpen competitiveness. A fresh round of layoffs is slated for March, following about 1,000 job eliminations earlier this month, according to sources familiar with the plans cited by Reuters. “We will continue to reduce our headcount in 2026,” a bank representative stated in an email to Investing.com, attributing the moves to evolving business needs, technology-driven efficiencies, and nearing completion of its organizational overhaul.

These reductions form part of a broader 2024-announced initiative to eliminate 20,000 roles—roughly 8% to 10% of its workforce—by year-end 2026, aiming for annual expense savings up to $2.5 billion. Citigroup’s headcount has already dwindled from 240,000 in 2022 to 226,000 by late 2025, Chief Financial Officer Mark Mason told analysts during a recent earnings call. “We have been reducing headcount and expect that trend to continue as we take a step back and look at the trajectory of our expense base,” Mason said, per Yahoo Finance reporting on Investing.com details.

Fraser’s Relentless Overhaul

Since assuming the top role in 2021, Fraser has exited international retail banking in much of the world, streamlined five core businesses, and slashed management layers from 13 to eight. The March cuts, expected post-bonus payouts, will hit managing directors and senior staff hardest across segments, Reuters sources noted. Some executives are scrambling for reassignments to dodge the blade, amid a shift toward digital infrastructure alignment. Citigroup shares dipped 1.3% on the news, trading lower amid severance cost concerns despite a 65.8% gain in 2025 that outpaced peers, as reported by Reuters.

The bank reserved $600 million for severance in 2025, down from prior rounds, with Mason signaling ongoing trims. Earlier actions included 3,500 tech job cuts in China by Q4 2025 to bolster risk and data controls, per Reuters, and discreet reductions without fanfare, unlike publicized 2023-2024 layers. Fraser’s recent memo to staff struck a stern tone: “We are not graded on effort. We are judged on results,” as covered by Fortune, framing 2026 as the emergence of a “more disciplined, more confident, winning Citi.”

Senior Ranks in the Crosshairs

Managing directors face disproportionate impacts, with the push aligning staffing, locations, and skills to priorities like technology efficiencies and transformation milestones. “These changes reflect adjustments we’re making to ensure our staffing levels, locations and expertise align with current business needs,” the spokesperson told Investing.com. X posts from insiders, tracked via TheLayoff.com alerts, echo anxiety over compensation, performance bars, and offshore meetings hinting at more cuts, though unverified.

Analysts view the moves as essential to close profitability gaps with rivals, fueled by record Q3 2025 revenues across businesses but pressured by regulatory costs and data woes. Citi’s expense trajectory targets $51 billion to $53 billion by 2026 end, per Bloomberg. Severance last year hit $800 million, with further hits anticipated as the bank nears its leaner form.

Broader Banking Pressures

Citigroup’s actions mirror sector trends, with peers like UBS integrating Credit Suisse via cuts and HSBC targeting $1.8 billion savings by 2026 end. Tech integrations and AI shifts amplify efficiencies, though X discussions from users like @thejobchick predicted Q1 2026 waves based on workforce data patterns. Investors welcome long-term gains but eye near-term drags from payouts, with shares resilient overall.

Fraser’s strategy bets on cultural overhaul and tech to deliver consistent returns, high stakes amid morale strains from blunt messaging. As Citi approaches its target state, the focus sharpens on execution in trading, dealmaking, and core lines that drove 9% revenue growth in Q3 2025, per PYMNTS.com.

Path to Leaner Operations