Citi Slashes 3,500 Tech Jobs in China as Global Revamp Gains Steam

Banking giant Citigroup (C) continues to reduce its headcount through more layoffs as part of its global plan to simplify operations and boost profits. According to Bloomberg, the company will cut around 3,500 tech roles in China. The layoffs will hit employees at the company’s technology hubs in Shanghai and Dalian, and are expected to be completed by the start of the fourth quarter this year.

Some tech roles may be moved to other offices to support Citi’s global tech network. However, the company has not shared exact headcounts at the affected locations.

Citi Pushes to Boost Efficiency

The layoffs are part of Citi’s broader plan to simplify its structure and boost efficiency under CEO Jane Fraser. Last year, the bank announced it would cut 20,000 jobs globally by the end of 2026. The company aims to streamline its operations and improve profitability to better compete with its rivals.

Earlier this year, the bank also cut about 200 contractor roles in China to reduce reliance on outside workers and improve internal systems.

Citigroup Is Still Committed to China Market

Despite the job cuts, Citi said that it is not stepping back from China. Its local banking arm, Citibank (China) Co., will not be affected by the workforce reductions in the technology division. In fact, Citi is still investing in this unit to serve corporate and institutional clients in the country.

Citi also said that it is still working toward launching a wholly owned securities and futures company in China. However, progress on this front has been slow, largely due to regulatory hurdles on both the U.S. and Chinese sides.

In a key leadership move, Citi recently appointed Wenjie Zhang as its new head of China operations. A veteran banker, Zhang is expected to help strengthen Citi’s presence and relationships in the country.

Is Citigroup Stock a Buy, Sell, or Hold?

Wall Street is cautiously optimistic on Citigroup stock, with a Moderate Buy consensus rating based on 10 Buys and four Holds. The average C stock price target of $88.33 implies about 15.62% upside potential.

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