Citigroup is preparing for another round of job cuts expected to be announced in March, according to two sources familiar with the matter. The planned reductions would follow a recent tranche of roughly 1,000 layoffs in January 2026, the sources said.
The people briefed on the plans said the next wave is likely to be disclosed after the bank completes annual bonus payments, a timing that typically reduces disruption around compensation decisions. The sources did not specify how many roles could be eliminated or which geographies would be most affected, but they said the cuts are expected to reach managing directors and other senior employees across multiple business lines.
While the earlier January actions were reported publicly, the latest reductions have been unfolding with less visibility, reflecting a management preference to execute targeted staffing changes without the broad announcements seen in prior phases of the overhaul.
Turnaround Strategy And Expense Discipline
The prospective March cuts fit into CEO Jane Fraser’s multi-year effort to simplify the bank’s structure, improve performance relative to major rivals, and address long-running supervisory concerns. Fraser, who became chief executive in 2021 and later took on the additional role of board chair, has been pursuing a reset that includes fewer management layers and an operating model centered on a smaller set of core businesses.
On an earnings call referenced in the reporting, CFO Mark Mason indicated that headcount has been trending lower and that management expects that direction to continue as the bank reassesses its expense base. Citigroup also disclosed it spent $800 million on severance in the prior year, underscoring the financial cost of the restructuring even as it seeks to capture durable savings.
More broadly, Citigroup has previously set out a goal of reducing staffing by about 20,000 roles by the end of 2026, positioning the latest actions as part of a longer arc rather than a one-off response to a single quarter’s results.
Workforce Trajectory And Business Context
The bank’s employee base has been shrinking over several years. The reporting said Citigroup’s global workforce fell from about 240,000 in 2022 to roughly 226,000 by the end of 2025, reflecting a combination of reorganization, efficiency initiatives, and selective exits from non-core activities.
The transformation has also involved management streamlining and asset sales, with the bank focusing resources on areas where it believes it can generate more consistent returns. While Citigroup continues to compete across consumer and institutional businesses, it operates a smaller U.S. branch footprint than some peers, with roughly 650 branches concentrated in several major metropolitan areas—an operating reality that shapes both costs and growth options.
At the same time, the bank has sought to bolster parts of its franchise even while cutting costs, including efforts to recruit senior talent in segments such as investment banking, an approach meant to balance near-term expense control with longer-term revenue ambitions.
Markets, Capital Actions, And Regulatory Backdrop
Investors have closely tracked the overhaul because Citigroup has spent years trying to lift profitability and improve execution. The reporting noted the bank’s shares rose 65.8% in 2025, while the stock was modestly lower in early 2026 trading. Alongside the restructuring, Citigroup has returned capital to shareholders by completing $13.25 billion in stock buybacks, according to the same report.
Regulatory pressure—particularly around controls and governance- has been a central driver of the transformation. Recent reporting said some U.S. enforcement actions have been lifted, signaling incremental progress even as the bank continues to emphasize risk management and data improvements as key workstreams.
The prospective March layoffs, if implemented as described, would mark another step in Citigroup’s attempt to align its expense base with strategic priorities while sustaining momentum in market confidence—an equation that will remain in focus as the bank continues reshaping its organization through 2026.
