Citigroup plans additional layoffs targeting managing directors and senior staff in March 2026 after cutting ~1,000 jobs this month, advancing CEO Jane Fraser’s cost control restructuring.
Citigroup’s layoffs are not over. After cutting about 1,000 jobs in January, the bank is preparing another round of reductions, this time reaching senior managing directors across several business lines, people familiar with the matter told Reuters on January 23, 2026.
The next wave, expected in March and kept quiet until now, will come shortly after bonus payouts. It follows earlier warnings from finance chief Mark Mason that Citigroup’s workforce would keep shrinking. Employee numbers have already fallen from around 240,000 in 2022 to roughly 226,000 last year.
The job cuts are part of CEO Jane Fraser’s long-running effort to fix regulatory problems and improve returns that still lag behind rivals. That restructuring has come at a cost, with Citigroup spending about $800 million on severance in 2025 alone.
Restructuring Targets Senior Leadership
Citigroup began laying the groundwork for its latest job cuts months in advance. Before the reductions, some senior managers were reassigned to protect key roles. In January, the bank had already trimmed senior positions, sending an early signal that deeper efficiency measures were underway.
The quieter cuts planned for 2026 come after a November reorganisation and a round of asset sales. They stand in contrast to the highly visible layoffs of 2023 and 2024, when about 20,000 jobs were eliminated.
Regulatory pressure has eased in the meantime. The Federal Reserve and the Office of the Comptroller of the Currency have lifted sanctions tied to risk management and data governance after the bank addressed long-standing issues.
Expense Discipline Drives Headcount Reductions
Citigroup executives have made it clear that the job cuts are not a one-off. Finance chief Mark Mason said staffing levels will keep falling as the bank reshapes where it operates and what skills it needs, leaning more heavily on technology to run its businesses.
Investors largely rewarded the effort last year. Citi’s shares jumped about 65% in 2025, helped by $13.25 billion in share buybacks and performance that beat rivals. CEO Jane Fraser was granted a $25 million equity award and named board chair for her role in the turnaround, even though the stock is slightly lower so far this year.
Strategic Context Amid Peer Pressure
With regulatory hurdles now largely cleared, Citigroup is pushing ahead with job cuts.
The bank has not said how many positions will be eliminated, but the focus on senior staff suggests a faster move to slim down layers of management. Executives are betting that a leaner structure will leave the bank better positioned against rivals.
Across the industry, the question is whether Citigroup can pull this off without losing experienced talent as it tries to bring costs under control.
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