The job cuts are affecting a division based in Shanghai and Dalian, responsible for providing IT services to Citigroup operations in more than 20 countries.
The bank indicated that some positions will be relocated to other countries “to be closer to the businesses and products they support,” without revealing specific numbers or destinations.
The financial institution stated that the process is expected to be completed “at the beginning of the fourth quarter.”
“While there is still work to be done, many of our efforts have allowed us to improve the efficiency of our operations, workforce, and global infrastructure presence,” said Marc Luet, Citi’s head for Japan, North Asia, and Australia, quoted by the Financial Times.
The bank, which has maintained a presence in mainland China since 1902, assured that the decision will not impact its Chinese subsidiary’s banking operations, headquartered in Shanghai, nor the tech team based in Guangzhou, which continues to provide services to mainland China and Hong Kong.
The third-largest bank in the United States in terms of assets, Citigroup has been addressing persistent operational and profitability challenges through a deep restructuring, including laying off thousands of workers and simplifying its management structure.
Marc Luet further emphasized that Citi “remains committed to advancing with the creation of a fully-owned securities and futures company in China.” In recent years, several foreign financial institutions have been seeking full control over their operations in the country, despite the adverse economic and geopolitical context.
This cut represents one of the largest layoffs among foreign financial groups in China in recent years and reflects a growing trend of staff reduction in the tech sector.
In October, Fidelity International cut about 500 jobs in Dalian. IBM also announced last summer the elimination of over a thousand positions in the Chinese market.
These layoffs are also part of a broader context of workforce reductions, driven by weak dynamics in mergers and acquisitions operations and the slowdown of the Chinese economy. According to data compiled by the Financial Times, based on local subsidiaries’ annual reports, Western banks reduced their workforce in China by 13% in 2023.
