Citi plans to cut 3,500 tech roles in China as global banks cut costs

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Citi plans to cut 3,500 tech roles in China as global banks cut costs

HONG KONG, CHINA – 2024/06/07: Pedestrians walk past the American multinational investment bank, Citibank or Citi, branch in Hong Kong.  

Sebastian Ng | Lightrocket | Getty Images

Citigroup said Thursday it plans to cut around 3,500 technology positions in China, in the latest move by a major U.S. bank to streamline global operations and reduce costs.

The reduction of staff at the China Citi Solution Centers in Shanghai and Dalian is expected to be completed by the start of the fourth quarter this year, Citi said in a statement.

The jobs affected are mostly in the information technology services unit, providing software technology development, testing and maintenance and operational services for Citi’s global business.

The company said some of the roles will be moved to Citi’s technology centers elsewhere, without specifying the numbers of jobs or specific locations.

The layoffs in China come as Citi continues to work through a broader plan announced January last year, to reduce 10% of its workforce, or about 20,000 employees globally. It has moved to streamline operation and downsize office in the U.S., Indonesia, the Philippines and Poland, the company said.

Led by CEO Jane Fraser, Citi has undertaken a sweeping reorganization aimed at improving profitability and restoring investor confidence after years of lagging behind major U.S. banking peers.

A slew of major global banks are under fresh pressure to trim costs against the backdrop of deteriorating global economic

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as U.S. President Donald Trump’s tariff policies spark concerns for declining global demand.

Hong Kong-based Hang Seng Bank, a subsidiary of HSBC, said

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it was restructuring business and streamlining duplicate roles in a move that would lead to job losses for about 1% of its “core staff.” The job cuts were part of a cost-cutting drive led by HSBC CEO Georges Elhedery, who aims to reduce expenses by $1.8 billion by the end of 2026.

The Hong Kong and mainland China-focused lenders have reported rising bad loans over the last few years due to their relatively high exposure to the property sector in those key markets.

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