Citigroup Job Cut News: Citi Trimmed Another 2000 Jobs In Q3, Severance Charges Reach $650 Million

Citigroup Inc. has trimmed its employee count by 2,000 in Q3, taking the total job to 7,000 so far this year according to a Bloomberg report. The fresh job cut by the group has brought the firm's total severance charges for the year to $650 million.

This was shared by CFO Mark Mason during an earnings call, according to the report.

The company stated that the earlier $450 million charges, disclosed in June, were for around 5,000 job cuts.

Mark Mason highlighted that the recorded charges for the year don't include the recent reorganisation announced in the last month. Through this reorganisation the group aims to refocus Citigroup on five key businesses.

As per the report, the company has mentioned that the restructuring will result in further job cuts, however, the number has not been specified yet.

On Friday, Citigroup Inc. reported net income for the third quarter of 2023 of $3.5 billion, or $1.63 per diluted share, on revenues of $20.1 billion. This compares to net income of $3.5 billion, or $1.63 per diluted share, on revenues of $18.5 billion for the third quarter 2022.

Commenting on the results, Citi CEO Jane Fraser said, "Despite the headwinds, our five core, interconnected businesses each posted revenue growth resulting in overall growth of 9%. Services, our fastest-growing business, grew by 13% with Treasury and Trade Solutions having its best quarter in a decade. Markets was up 10% driven by strength in Fixed Income.

Banking activity played to our mix and grew 17%, bolstered by a rebound in debt issuance and some signs of life in the equity capital markets. U.S. Personal Banking also had double-digit revenue growth while a continued deceleration in spending indicates an increasingly cautious consumer. And Wealth revenues grew as the business continues to win new mandates and acquire new clients."

Net income of $3.5 billion increased 2% from the prior-year period. Excluding divestiture-related impacts(5), net income increased 3%. The increase in net income was primarily driven by the higher revenue, partially offset by higher expenses and higher cost of credit.

According to the company, Citigroup's book value per share of $99.28 and tangible book value per share of $86.90 at quarter end increased 7% and 8%, respectively, versus the prior-year period. The increases were largely driven by net income to common, common share repurchases, and beneficial movements in the accumulated other comprehensive income (AOCI) component of equity, partially offset by payment of common dividends.