The staff reductions are expected to be completed by the beginning of the fourth quarter of this year. A source familiar with the matter indicated that the majority of the affected positions are full-time roles. While Citi stated that some of these roles would be transferred to its technology centers in other locations, specific numbers or destinations were not disclosed.
This news follows a Reuters report last month that Citi was already in the process of cutting around 200 information technology contractor roles in China. The bank's internal plans, unveiled in March, highlighted a dramatic shift away from relying on IT contractors, with a push to hire thousands of employees for IT functions. This strategic pivot comes in the wake of regulatory penalties levied against Citi concerning data governance and inadequate controls.
The workforce reduction is not limited to China; Citi has also scaled back operations in the United States, Indonesia, the Philippines, and Poland as part of its ongoing global restructuring plan. The service and technology unit in China is crucial, providing financial technology and operations services for Citi's global businesses.
Beyond its IT operations, Citi maintains significant banking businesses in China and is actively working towards establishing a securities unit in the country. Marc Luet, Citi's banking head for Japan, Asia North, and Australia, reiterated the bank's commitment to its presence in China. In a statement, Luet affirmed, “Citi continues to pursue the establishment of a wholly owned securities and futures company in China.” He further emphasized Citi's dedication to its corporate and institutional clients in China, supporting their cross-border banking needs, and assisting its international clients' business in the market.
Following these tech job cuts, Citi is anticipated to have approximately 2,000 staff remaining in China, with a few hundred continuing to work within the tech unit, according to the unnamed source.