Citigroup Inc. has announced plans to lay off approximately 3,500 technology employees in mainland China, marking a significant step in the bank’s ongoing efforts to streamline operations and reduce global costs.
The affected positions are primarily based in the bank’s Citi Solution Centers located in Shanghai and Dalian and are part of the information technology services unit. These teams have supported software development, testing, maintenance, and operations for Citi’s global business.
The job cuts are expected to be completed by the beginning of the fourth quarter of 2025. While some roles will be relocated to Citi’s other technology hubs worldwide, the bank has not disclosed specific numbers or destinations. The restructuring does not affect Citi’s local banking subsidiary, Citibank (China) Co., or its technology operations in Guangzhou that continue to serve the mainland China and Hong Kong markets.
Citi emphasized its continued commitment to corporate and institutional clients in China and affirmed ongoing plans to establish a wholly owned securities and futures company in the country.
“China has always been an important part of Citi’s global network,” said Marc Luet, head of Japan, North Asia, and Australia. “We are committed to supporting clients’ cross-border banking needs.”
The layoffs form part of Citi’s broader restructuring plan, introduced in early 2024, to reduce its global workforce by 10% — or approximately 20,000 employees — by 2026. Under CEO Jane Fraser’s leadership, the bank is implementing major organizational changes to address long-standing inefficiencies and improve profitability relative to peers.
The global banking sector has increasingly turned to workforce reductions and operational consolidation in response to rising costs, regulatory changes, and a challenging economic outlook. Several other major financial institutions, including Bank of America, JPMorgan, and HSBC, have also initiated cost-cutting measures in recent months. Hang Seng Bank, a subsidiary of HSBC, recently announced job cuts impacting about 1% of its core staff, while Bank of America has reportedly eliminated 150 positions within its investment banking unit.
In China, foreign banks have faced additional headwinds, including subdued economic growth, rising regulatory scrutiny, and a highly competitive market. These challenges have prompted some institutions to scale back operations or adjust their strategies. For example, Citi shut down its consumer banking business in China in 2022 as part of a broader global retreat from retail banking in 14 markets.
Industry analysts suggest that shifting market dynamics, trade tensions, and weaker domestic demand have prompted a broader re-evaluation of foreign banks’ presence in China.
According to Meng Shen, director at Chanson & Co., “Soft growth prospects in China and evolving regulations may continue to limit the upside for international banks operating in the region.”
With input from the Financial Times, Bloomberg, and CNBC.
