Citigroup has cut approximately 3,500 technology jobs in mainland China, marking one of the largest downsizings by a foreign financial institution in the country in recent years. The move is part of the U.S. bank’s broader strategy to streamline global operations and reduce costs amid an ongoing turnaround effort.
The layoffs affected technology teams in Shanghai and Dalian, two cities where Citi has operated major IT hubs supporting banking operations in more than 20 countries. The bank stated that some of the affected roles will be relocated to other countries “to be closer to the businesses and products they support,” though no specific figures or destinations were disclosed. Citi expects the transition to be completed by the beginning of the fourth quarter.
“While there is still work to do, many of our efforts have helped us drive efficiencies in the way we work, in our workforce and across our global real estate footprint,” said Marc Luet, Citi’s head of banking for Japan, North Asia, and Australia.
The bank emphasized that the decision does not impact its core banking operations in China, including its Chinese subsidiary headquartered in Shanghai or its technology staff in Guangzhou, who continue to serve mainland China and Hong Kong clients.
Citigroup, the third-largest U.S. bank by assets, is in the midst of an aggressive restructuring effort aimed at addressing long-standing profitability and operational inefficiencies. This includes flattening management layers and slashing thousands of jobs worldwide.
The layoffs reflect a broader trend of job cuts by Western financial institutions in China, particularly in technology roles. Fidelity International reportedly laid off around 500 tech employees in Dalian last October, and IBM announced more than 1,000 job cuts in China last summer.
Citi’s latest move also comes amid a cooling Chinese economy and declining deal activity, prompting banks to reassess staffing levels. In 2023 alone, Western banks reduced headcount at their Chinese subsidiaries by an average of 13%, according to Financial Times analysis.
An employee in Citi’s Dalian office who was among those let go said staff were offered severance packages worth up to six months’ pay, contingent on signing agreements within June. The person noted that the division had shifted away from supporting China-based operations in recent years, instead focusing on clients in Europe, the Americas, and other parts of Asia.
Despite the cuts, Citi reiterated its long-term commitment to China, stating it continues to pursue a license for a wholly owned securities and futures company in the country. Foreign banks have been seeking greater control over their Chinese operations in recent years, but efforts have been complicated by a challenging geopolitical and economic environment.
