New York, March 17: Citigroup, one of the largest banks in the US, is reportedly planning to reduce its workforce by 30%. With the latest round of Citigroup layoffs, the investment banking company aims to minimise its reliance on the IT staff. The report said the company seeks to skip hiring third-party contractors after recent USD 22.9 million fraud and as part of its broader strategy to strengthen internal technology and address the regulatory concerns about data governance and risk management.

Citigroup's layoffs round aims to help the company focus on hiring more staff in its respective ranks as it relies less on third-party contractors to run the operations. The reports suggested that the investment banking giant will increase 2,000 more employees in technology compared to last year. Layoffs: US Postal Service Plans Massive Job Cuts in Coordination With Elon Musk’s DOGE, To Lay Off 10,000 Workers.

In 2024, Citigroup had 48,000 employees and now the lender will aim to make it 50,000. The reports have highlighted that Citigroup's head of technology, Tim Ryan, informed the company's staff that the job cuts of contractors will be around 20% of the workforce in the IT sector from the current 50%. 

Although the bank will soon replenish the roles by hiring new people, the lost ones will likely not be hired back by the company. Addressing the Citi layoffs, the bank said that it was growing its internal capabilities to support the strategy so that it could improve safety and soundness. It also said that cutting jobs would help it increase revenues and become more efficient. Tech Layoffs: 22,692 Employees Laid Off by 81 Companies So Far in 2025, Job Cuts Surge Globally Amid Various Reasons.

Moreover, Citigroup will reportedly move its IT teams from Rutherford and New Jersey to a new facility in Jersey City. The reason behind laying off these third-party contractors was the company penalised regulations and imposed a USD 136 million fine for the deficiencies in the data governance in 2024. The workforce reduction was due to the recent fraud of USD 22.9 million, which included external contractors highlighting the risks associated with outsourcing.

(The above story first appeared on LatestLY on Mar 17, 2025 10:49 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).