In a significant workforce restructuring move that underscores Wall Street’s evolving approach to global operations, Citigroup plans to eliminate approximately 3,500 technology positions in China by 2025. This reduction represents nearly half of the bank’s technology workforce in the country, according to sources familiar with the matter who spoke on condition of anonymity.
The job cuts are part of Citigroup CEO Jane Fraser’s broader organizational overhaul aimed at streamlining operations and boosting profitability. Since taking the helm in 2021, Fraser has embarked on what industry analysts describe as the most ambitious restructuring in Citi’s recent history.
“What we’re seeing with Citi’s China tech cuts reflects a fundamental reassessment of global banking operations,” says Raymond McGuire, financial sector analyst at Morgan Stanley. “These aren’t just cost-cutting measures but strategic realignments of where and how banking technology resources are deployed.”
The China-based technology positions being eliminated include roles in application development, infrastructure management, and digital banking platforms. Many of these functions will be consolidated in other global technology centers in India, Ireland, and the United States, according to people briefed on the plans.
This restructuring occurs against a backdrop of rising geopolitical tensions between Washington and Beijing, though Citi representatives have emphasized that the decision stems primarily from organizational efficiency goals rather than political considerations.
Since January 2023, Citigroup has reduced its global workforce by approximately 10,000 employees, with technology and operations departments bearing a significant portion of these cuts. The bank reported first-quarter results in April that fell short of analyst expectations, highlighting the urgency behind Fraser’s transformation agenda.
The Federal Reserve’s banking stress test results, expected later this month, will provide additional context for Citi’s strategic decisions. Last year, the bank performed adequately but showed vulnerabilities that Fraser’s team has been working to address through these structural changes.
“Banking technology has reached an inflection point where centralization often makes more sense than distributed operations,” explains David Hoffman, banking technology consultant and former JP Morgan executive. “The pendulum is swinging back toward consolidation after years of global expansion.”
For employees affected by the cuts, Citi has reportedly developed severance packages that exceed local requirements, though specifics remain undisclosed. The bank has also implemented internal transfer programs for high-performing staff, allowing some to relocate to remaining technology centers.
Competitors like Goldman Sachs and Morgan Stanley have implemented similar workforce reductions over the past 18 months, though not with the same geographic concentration as Citi’s China cuts. Industry observers note this marks a significant shift from the aggressive China expansion strategies many Western financial institutions pursued in the previous decade.
The Financial Times reported earlier this year that several global banks have quietly reduced their China exposure amid regulatory challenges and disappointing returns on investment. Citi’s tech cuts appear to align with this broader industry recalibration.
Looking forward, Fraser’s restructuring plan faces significant implementation challenges. Previous attempts to overhaul Citi’s sprawling operations under former CEOs yielded mixed results. The success of this current transformation will likely depend on how effectively the bank can consolidate technology functions without disrupting critical services.
“The banking industry watches these moves closely because technology integration has become the defining competitive advantage,” notes Sarah Chambers, banking analyst at Bloomberg Intelligence. “The question isn’t just whether Citi saves money, but whether they emerge with more responsive, innovative capabilities.”
For China’s technology sector, Citi’s departure creates both challenges and opportunities. While the job market absorbs thousands of financial technology professionals, domestic financial institutions may benefit from access to talent previously employed by Western banks.
The Bank of China and Industrial and Commercial Bank of China have both announced technology expansion initiatives that could potentially absorb some displaced workers, according to mainland Chinese financial publications.
As Citi moves forward with these cuts, investors remain cautiously optimistic about the bank’s transformation prospects. The stock has underperformed major banking indices over the past year, but recent analyst reports from Goldman Sachs and JPMorgan suggest the restructuring could position Citi for improved performance if executed successfully.
Fraser’s legacy at Citigroup will likely be defined by this sweeping reorganization. Banking industry veterans recall similar pivotal moments in other financial institutions’ histories, including Bank of America’s post-financial crisis restructuring and Wells Fargo’s regulatory-driven overhaul.
As one former Citigroup executive put it: “These aren’t just job cuts—they’re a fundamental reimagining of what a global bank should look like in the 2020s and beyond.”
