Citigroup Inc. will cut its technology employee workforce in China by about 3,500 as part of its global simplification efforts, while reiterating its commitment to the world’s second-largest economy.
The reductions at its Shanghai and Dalian solution centres are expected to be completed by the start of the fourth quarter, the bank said in a statement. Some positions will be relocated to other centres to support Citi’s global network. The firm declined to provide staffing numbers at the Chinese locations.
Citi’s wholly-owned local banking subsidiary Citibank (China) Co. will be unaffected, it said, adding the bank continues to invest in the unit to support corporate and institutional clients in the country.
Citi is trying to streamline its operations and lift profitability to compete more closely with its rivals, with an aim set out last year to reduce jobs by 20,000 by the end of 2026.
“We are committed to our corporate and institutional clients in China and supporting their cross-border banking needs, as well as clients across our international network who do business there,” Marc Luet, head of Japan, Asia North and Australia, and Banking, said in a statement. The bank is continuing to pursue the establishment of a wholly owned securities and futures company in China, he said.
The plans for a Chinese securities firm have been hampered by both US and Chinese regulations. Citigroup had initially aimed to get the investment banking business up and running by mid-2023.
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In 2022, the lender also announced it would shut its consumer banking business in China as part of a broader retreat across 14 markets.
