From Fortune Magazine:

Citigroup Inc. plans to cut 20,000 jobs in a move that will save the company up to $2.5 billion as CEO Jane Fraser seeks to improve the bank’s returns. Yearly expenses are expected to decrease to $51-53 billion with 2024 costs projected to be around $53.5-53.8 billion.

Disappointing Q4 results seem to further fuel Fraser’s decision to eliminate bureaucracy and modernize management layers to boost the bank’s profitability. The losses were also attributed to severance payments and charges to operating expenses, including a special assessment to replenish the FDIC’s coffers.

Fraser aims to boost the bank’s return on tangible common equity to at least 11% by 2027. This restructuring will help her reach her goal and reflect a turning point for the company as it shifts towards simplification and divestitures. Additionally, the 20,000 job cuts will contribute to saving the company millions of dollars in expenses.



Read more: Citigroup 4Q earnings: Jane Fraser to cut 20,000 jobs