Citi fires two thousand workers: it spent US$650M on severance pay in 2023

Citigroup Inc. cut its workforce by another 2,000 jobs in the third quarter, bringing the company’s total severance expenses for the year They amounted to US$650 million.

So far this year, the company has eliminated nearly 7,000 positionssaid the financial director, Mark Mason, in an earnings conference call. That compares with the US$450 million in compensation charges which the bank had recorded at the end of June, which Mason said at the time They covered about 5,000 layoffs.

“The workforce reduction is related to those repositioning chargesMason said, noting that the charges the company recorded so far this year They do not cover the reorganization that Citigroup announced last month: a renewal that will reorient the company towards five key businesses.

The Federal Reserve could opt for a new increase in interest rates after the employment rates

Citigroup has stated that the reorganization will lead to more job cuts, but has not yet defined the total number of layoffs.

Despite the cuts, the company’s workforce has remained stable at 240,000 employees for the last four quarters. The bank has brought in technology staff and other employees to help in its efforts to resolve a pair of consent orders the company received from regulators.

Citigroup’s expenses increased 6%, up to US$13.5 billion, in the third quarter, less than expected by analysts. The bank continues to project full-year expenses of US$54 billionaccording to an earnings report.

Translated by Paola Torre.

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