Citigroup to Cut 3,500 Jobs in China by 2025

Citigroup has announced a significant restructuring plan in China, which involves the reduction of approximately 3,500 technical positions in its global technology and business support departments. This move is part of Citigroup's broader global strategy to simplify operations and enhance efficiency. The restructuring primarily affects Citigroup's technology centers in Shanghai and Dalian, with the aim of completing the adjustments by the fourth quarter of 2025. The company has emphasized that its local subsidiary, Citibank (China) Co., Ltd., and its operations in Guangzhou will not be impacted by these changes.

The decision to reduce the workforce is driven by several factors, including the need for operational efficiency and the ongoing evaluation of resource deployment. Citigroup has stated that this adjustment is part of its 2025 financial plan and is aimed at streamlining operations, reducing reliance on third-party personnel, and minimizing the number of software applications used. The company has also highlighted that the affected employees will receive compensation packages that exceed the average industry standards, along with support services to assist them in their transition.

Citigroup's restructuring efforts are not limited to China. The company has previously announced similar adjustments in other regions, including the United States, Indonesia, the Philippines, and Poland. These moves are part of a broader strategy to optimize global office space and reduce operational costs. Despite the workforce reduction, Citigroup remains committed to its operations in China, where it has been present for over a century. The company continues to invest in its enterprise and institutional client services, aiming to support both local and international businesses operating in the region.

Citigroup has also announced the appointment of Zhang Wenjie as the President of Citigroup China and the CEO and Executive Director of Citibank (China) Co., Ltd. This appointment, which is subject to regulatory approval, underscores Citigroup's commitment to its operations in China. Zhang Wenjie will lead the business development and operational management of Citigroup China, drive customer business strategies, and oversee compliance and regulatory matters. He will also serve as the company's chief external representative in China, coordinating market resources.

Citigroup's restructuring plan has been met with mixed reactions from employees. Some have expressed surprise at the sudden nature of the announcement, while others have noted the generous compensation packages offered by the company. Citigroup has assured that it will provide comprehensive support to affected employees, including one-on-one communication, financial assistance, and re-employment support programs. The company's focus on enterprise and institutional clients in China underscores its long-term commitment to the region, despite the current adjustments.