Employment Law

Citigroup to slash 20,000 jobs over the ‘medium-term’

A photo of a person using a laptop. (Photo: Zanilic / Unsplash)

Citigroup plans to eliminate approximately 10 per cent of its workforce, or 20,000 jobs, over the “medium-term.”

What’s happening at Citigroup?

According to news outlets, including CNBC, the reduction at Citigroup is part of CEO Jane Fraser’s corporate overhaul.

While the bank didn’t specify the amount of time that the job cuts will take place over, it has previously used “medium-term” to denote a three- to five-year period.

In a slideshow tied to its fourth-quarter earnings, the company said it expects severance and other costs related to the “organizational simplification” to be between US$700 million and US$1 billion.

Citigroup added that it’s also in the process of spinning out its Mexican operations. The separation is expected to be complete in the second half of the year.

Excluding its Mexican operations, the company employed approximately 200,000 people at the end of 2023.

Layoffs occurring in waves

Citigroup has already executed several waves job cuts — beginning with the top layers of the bank in November.

A source told CNBC that the next reduction is expected to take place on Jan. 22.

Citigroup layoffs in Canada

It remains unclear if Canadian employees will be affected by the next round of layoffs at Citigroup.

Citi Canada claims on its website that it has approximately 1,700 workers across the country.

Termination agreements for Citi Canada employees

In Canada, non-unionized employees at Citigroup are owed full severance pay when they lose their jobs due to downsizing, corporate restructuring, or the closure of the business.

This includes individuals working full-time, part-time, or hourly in Ontario, Alberta, and B.C.

People working “on contract” or as a contractor may also be owed severance pay — given that many employees in Canada are often misclassified as independent contractors.

Severance can be as much as 24 months’ pay, depending on a number of factors.

WATCH: Employment lawyer Lior Samfiru explains what rights employees have if they are being fired or let go on an episode of the Employment Law Show.

Before you accept any severance offer, have an experienced employment lawyer at Samfiru Tumarkin LLP review it and your employment contract.

If you don’t receive the correct amount, which happens often, you have been wrongfully dismissed and should take legal action.

Non-unionized employees in Canada have up to two years from the date of their dismissal to pursue proper severance pay.

Severance pay for banking sector staff
Rights to severance for federally regulated employees
• Severance packages during mass layoffs

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Major layoffs continue

Citigroup isn’t the only major employer reducing their workforce in 2024.

Other big names, including BlackRock, Indigo, Discord, Google, Amazon, Twitch, Unity, and Xerox, have also pulled out the axe as they continue to navigate challenging economic conditions.

• Firm launches $130M class action against Shopify for breach of contract
Dehumidified Air Solutions in Ottawa closing, laying off 80: Reports
Where are layoffs happening in Canada?

Lost your job? Talk to an employment lawyer

If you have been fired or let go for any reason, contact the experienced employment law team at Samfiru Tumarkin LLP.

Our lawyers in Ontario, Alberta, and B.C. have successfully represented tens of thousands of non-unionized individuals.

In addition to severance package negotiations, we can assist you on a broad range of employment matters, including:

If you are a non-unionized employee who needs help with a workplace issue, contact us or call 1-855-821-5900 to get the advice you need and the compensation you deserve.

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