Citigroup – further layoffs. Severance pay costs are rising


Citigroup reduced its workforce by another 2,000 jobs in the third quarter of 2023, bringing its total severance costs this year to $650 million, Bloomberg reported.

The company has laid off about 7,000 people this year, Chief Financial Officer Mark Mason said during a conference call with analysts discussing the results. That’s a significant increase from the $450 million in charges the bank recorded at the end of June, which then included about 5,000 layoffs.

More layoffs at Citigroup

“Employment is down due to repositioning fees,” Mason said. He also noted that the charges the company has recorded so far this year do not include the reorganization announced by Citigroup last month. It is intended to focus the company on five key business areas, Bloomberg wrote.

Citigroup said the reorganization will lead to more job cuts, but has not yet released the number of layoffs.

Despite the cuts, employment throughout the company remained unchanged over the last four quarters and amounted to 240,000 employees.

Citigroup expenses increased 6% in the third quarter. to $13.5 billion, which is less than analysts expected. The bank still expects full-year expenses of $54 billion, it said during its earnings presentation.

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