In the third Quarter i.e. Q3, Citigroup cut down its staff by 2,000 employees. So, if you calculate the company’s total layoff cost for the year 2023 to $650, says a report on Bloomberg.
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Citigroup’s Chief Financial Officer Mark Mason announced in a conference call with analysts stating that the company has reduced 7,000 jobs in total in 2023. He also added that the earlier $450 million documented at the end of June was for roughly 5,000 job cuts.
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Mason also noted that the reason behind the layoffs in the company is the repositioning charges. He also stressed the fact that the company’s charges recorded so far this year couldn’t encapsulate the reorganization drive that the company had announced last month. The company now aims to refocus on five important businesses, which is like a revamp.
The group has also mentioned how the restructuring will cause more employees having to leave from the company. However, the report says that the company is yet to release a final headcount.
Even though the layoffs are going on in the group of companies, Citigroup’s present workforce includes 240,000 employees, which has been constant over the last four quarters. The bank has included technology staffers and other employees in its workforce so that the existing workforce could be assisted in the rules and regulations that the company is working on after getting a couple of consent orders from the regulators.
You will be shocked to know that at one end when it is cutting jobs, on the other end, the bank is increasing its spending by 6% to $13.5 billion. This was quite less than experts had estimated. As per the earnings presentation, the bank is still anticipating $54 billion in total expenses for the whole year, as per the report.
In June this year, there were reports that the company is also aiming to reduce 30 investment banking jobs and 20 corporate ones at its London branch in order to manage the unfavorable conditions in the market.
To adjust to the market conditions, Citigroup now wants to reduce its cost base. The company also plans to dissolve its international team that provides commentary and analysis on foreign exchange markets, according to a report on Bloomberg. London and New York’s workforce has been considerably reduced, added the report.
In such unpredictable times, large, medium-sized, and small organizations are cutting their costs by firing senior-level employees and announcing recruitment drives to assign jobs to freshers. It is quite saddening too as the startup ecosystem is also facing losses and unable to get funding from investors like the pre-pandemic times.
At the end of the day, what matters to every business is profit but reducing human costs will not help any company be it of any size sustain itself for the long term. Also, with the advent of technological changes, companies are unable to keep up with the same pace of work at the same cost calculations. Many companies prefer to invest in technology over hiring humans, so this is another challenge that is posing in the business world.
