Citigroup to Cut Hundreds of Jobs in China, Mostly Juniors
September 15, 2023: According to people familiar, Citigroup plans to cut hundreds of jobs in its China business. The cuts are expected to affect mostly junior bankers facing several challenges in the country.
The job cuts are part of a broader restructuring of Citigroup’s China business. The bank has been struggling to grow its revenue in the country and is under pressure from regulators to reduce its risk exposure.
The cuts also indicate the changing landscape for investment banking in China. The industry has been hit by several challenges in recent years, including a slowdown in economic growth and a crackdown on financial risk.
Here are some details about the job cuts:
- The cuts are expected to affect mostly junior bankers, who are typically responsible for researching and analyzing for more senior bankers.
- The cuts are also expected to affect some middle-level bankers, but how many must be clarified.
- The cuts are expected to be concentrated in Citi’s investment banking and trading businesses.
- The cuts are expected to be completed by the end of the year.
- The job cuts are a setback for Citigroup, which has been trying to expand its business in China. The bank has been investing heavily in the country in recent years, but it has yet to achieve the growth it had hoped for.
The job cuts also indicate the challenges facing investment banking in China. Many challenges have hit the industry in recent years, and it is still being determined when it will recover.
The job cuts will likely have a ripple effect throughout the Chinese financial industry. Many of the junior bankers who are being laid off will move to other banks or other industries. This could lead to a talent shortage in the investment banking industry, making it difficult for banks to do business in China.
The job cuts are also a reminder of the risks of doing business in China. The Chinese government has a history of intervening in the financial markets, and it is still being determined how it will react to the job cuts. This uncertainty could make it difficult for banks to plan for the future in China.
The job cuts are a significant development for Citigroup and the Chinese financial industry. It remains to be seen how the job cuts will impact Citi’s business in China and the overall investment banking industry in the country.
Here are some additional details about the job cuts:
- The cuts are expected to affect around 300 jobs, mainly in Shanghai and Beijing.
- The cuts are being made across all levels but are concentrated in junior and middle-level positions.
- The cuts are being made as part of a broader restructuring of Citi’s China business.
- Citi says the cuts are necessary to make China’s business more efficient and competitive.
- The job cuts have been met with disappointment from some employees. Some employees have said that the cuts are unfair and are being made when the Chinese economy is slowing down.
Citi says it is committed to its China business and will continue to invest in the country. The bank says that the job cuts are necessary to ensure the long-term success of its China business.