KUALA LUMPUR: Citigroup’s headcount dropped by 2,000 employees following a comprehensive reorganization aimed at boosting profits and streamlining management layers.
Similarly, Bank of America, Wells Fargo, and PNC Financial collectively trimmed more than 2,000 jobs in the three months ended March 31 compared to the previous quarter. This downsizing reflects banks’ efforts to manage costs amidst economic uncertainty, though expectations about future interest rate adjustments remain unsettled.
Citigroup‘s recent layoffs are part of a broader initiative to cut 7,000 jobs, which will be reflected in upcoming quarterly earnings as employees complete their notice periods.
The goal is to reduce Citi’s workforce by 20,000 over the next 2 years. Other banking executives acknowledged the challenges posed by changing interest rates, with higher funding costs and fluctuating trading results contributing to a cautious approach.
Bank of America’s CEO noted a planned reduction in headcount, which has already decreased by over 4,700 since the first quarter of 2023.
Meanwhile, investment banks like Goldman Sachs and Morgan Stanley saw declines in their workforce sizes, although they remain optimistic about increased revenue from capital markets activities like equity offerings and mergers.
JPMorgan Chase, in contrast, expanded its workforce by nearly 2,000 employees in the first quarter, reaching a total of 311,921 employees, bucking the overall trend of workforce reductions across the industry.
