Citigroup Cuts Singapore Workforce by 500 Amid Global Strategy Realignment

Citigroup Inc. has reduced its Singapore workforce by around 500 employees, totaling 8,000 staff members, as part of a global restructuring. The bank aims to simplify operations by eliminating management roles and focusing on the international division that oversees business outside North America. Despite the reduction, Citi Singapore remains a significant operation, and the bank plans to hire for its wealth business and commercial banking roles to cater to regional growth.

Citigroup Inc. (Citi), a global financial services company, has recently announced a significant reduction in its Singapore workforce, affecting around 500 employees [1]. This development is part of a broader global restructuring initiative by the bank aimed at simplifying operations and improving performance.

According to a memo sent to employees, Citi CEO Jane Fraser stated that the bank was in the final phase of a sweeping overhaul to streamline its structure. The latest reshuffle, which began on March 25, follows a series of reassignments and departures that have reduced the company's global workforce by 5,000 since September [1].

The reorganization, initiated in September 2023, has eliminated 1,500 managerial roles, representing 13% of the worldwide leaders. These changes are expected to generate annual savings of approximately US$1 billion [1].

Despite the workforce reduction, Citi Singapore remains a crucial operation for the bank. The company plans to hire for its wealth business and commercial banking roles to cater to regional growth [1].

Citi's restructuring efforts follow a challenging growth period, with the bank's CEO facing pressure to meet targets. The overhaul, which took seven months to complete, should provide evidence that Citi can execute its strategy effectively [2].

References:
[1] Business Times. (2024, March 25). Citigroup end sweeping overhaul, week after 5,000 layoffs. Retrieved from https://www.businesstimes.com.sg/companies-markets/banking-finance/citigroup-end-sweeping-overhaul-week-after-5-000-layoffs
[2] Reuters. (2024, April 9). Citigroup CEO faces growth challenge as overhaul rattles employees. Retrieved from https://www.reuters.com/markets/us/citigroup-ceo-faces-growth-challenge-overhaul-rattles-employees-2024-04-09/

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