Citi To Cut Over 3,000 Tech Jobs In China

In an effort to streamline worldwide operations and minimize expenses, Citigroup, a significant U.S. bank, revealed intentions on Thursday, June 5, to eliminate some 3,500 technology jobs in China.

According to a statement from Citi, the workforce reduction at the China Citi Solution Centers in Dalian and Shanghai should be finished by the beginning of the fourth quarter of this year.

The majority of the impacted positions are in the information technology services division, which develops, tests, maintains, and provides operational services for Citi’s international operations.

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 are part of a larger plan that Citi announced in January of last year to cut 10% of its employment, or roughly 20,000 workers worldwide. According to the statement, it has taken steps to reduce staff and streamline operations in the US, Indonesia, the Philippines, and Poland.

“China has always been an important part of Citi’s global network and business development. We will continue to firmly serve corporate and institutional clients in China and serve their cross-border banking needs,” Marc Luet, president of Citi Japan North Asia and Australia said in the statement.

Luet reaffirmed Citi’s plan to establish wholly-owned securities and futures companies in China.

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.

Citi is not alone in restructering operations. A slew of major global banks are under fresh pressure to trim costs against the backdrop of deteriorating global economic outlook as U.S. President Donald Trump’s tariff policies spark concerns over declining trade activity.

Hong Kong-based Hang Seng Bank, a subsidiary of HSBC, said last month it was restructuring business in a move that would lead to job losses for about 1% of its “core staff.” The job reductions were part of a cost-cutting drive, led by HSBC Group CEO Georges Elhedery, that aims to cut expenses by $1.8 billion by the end of 2026.

Hong Kong and mainland China-focused banks have seen rising bad loans over the last few years due to their relatively high exposure to China’s troubled property sector.

Several Wall Street banks including JPMorgan and Bank of America have also begun the annual process of terminating underperforming employees. Bank of America has reportedly eliminated 150 banker positions in its investment banking unit this year.

Some multinational businesses are mulling to scale back reliance on the China market, as they navigate the fallout from Beijing’s tensions with Washington, a sluggish domestic demand and intensifying competition from local companies.

A business survey from the American Chamber of Commerce in China showed the share of U.S. companies in China considering to relocate manufacturing or sourcing out of China hit a record high, at the outset of Trump’s second term.

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Escalating trade tensions have also dented confidence among European businesses with operation in China, according to a flash survey released Wednesday by the European Union Chamber of Commerce in China, highlighting “especially gloomy” expectations around heightened competition and profitability.

Local media reported last month that L’Oréal was planning to lay off up to half of its travel retail workforce in China as the French cosmetic giant continues to face sluggish sales.

German luxury carmaker Mercedes-Benz also plans to cut up to 15% of its sales and finance staff in China, Reuters reported, in a move that will affect about 2,000 people working in its research and development units.

The German luxury carmaker, however, still plans to spend heavily in China in the coming years to better compete with local electric-vehicle peers that dominate the market.

Credit: CNBC