Citigroup CEO Jane Fraser has warned employees that further job cuts are likely as the bank presses ahead with a wide-ranging restructuring aimed at improving performance and cutting costs. In a recent internal message to staff, Fraser said the time had come to move away from “old, bad habits” and focus sharply on measurable results rather than effort alone.
Citigroup, one of the world’s largest banks, is already in the middle of a multiyear overhaul that includes reducing management layers, simplifying operations and investing heavily in technology. As part of this plan, the bank aims to cut around 20,000 jobs globally by the end of 2026, which would reduce its workforce by roughly 8 percent. About 1,000 roles are expected to be eliminated in the latest round, adding to the thousands of positions already cut over the past year.
Fraser told employees that 2026 will be a decisive year for the bank. She stressed that while hard work is important, the organisation will be judged on outcomes. According to her, Citigroup must become faster, more disciplined and more competitive, especially as rivals move ahead in areas such as digital banking and automation.
A major factor behind the job reductions is the growing use of automation and artificial intelligence. Fraser acknowledged that new technologies are changing how work is done across the bank, making some roles unnecessary while increasing the need for specialised skills in other areas. Citigroup is upgrading its systems and processes as part of a broader “transformation” programme designed to modernise the bank and reduce long-term costs. The programme is expected to deliver billions of dollars in savings once fully implemented.
Despite the overall headcount reduction, Citigroup plans to continue hiring selectively in priority businesses, including investment banking and areas that support growth. Senior management believes the restructuring will help the bank improve returns, strengthen controls and meet regulatory expectations more effectively.
Fraser’s message signals a tougher stance on performance and accountability as Citigroup enters the next phase of its turnaround. While the changes are expected to be challenging for employees, the leadership argues they are necessary to position the bank for sustainable growth in an increasingly competitive and technology-driven global financial sector.
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