Citigroup's Chief Financial Officer, Mark Mason, announced that the company plans to allocate $600 million for severance costs by 2025 as it continues layoffs and cost-cutting measures. This figure represents a reduction of approximately 14% compared to last year when the bank laid off over 10,000 employees. Typically, the severance allocation stands around $300 million.
The New York-based bank is undergoing a multi-year restructuring process, initially aiming to reduce its global workforce by 20,000 positions. As part of this reform, Citigroup is also investing in technology. These layoffs and divestitures are part of CEO Jane Fraser's strategy to enhance returns, as Citigroup has been lagging behind its industry peers.
