Citi to Lay Off 3,500 Employees
Citigroup Inc. plans to cut down about 3,500 employees at two of its technology centers in China as part of its efforts to simplify and shrink its global tech operations to improve risk and data management.
The bank states, “the reduction of staff at the China Citi Solution Centers in Shanghai and Dalian is expected to be completed by the start of the fourth quarter this year.”
It added, some of the roles would be moved to Citi's technology centers elsewhere, without specifying the numbers of jobs or specific locations.
Citi in March unveiled plans internally to dramatically reduce reliance on information technology contractors and hire thousands of employees for IT, following regulatory penalties over data governance and inadequate controls.
As per reports, last month, Citi cut down around 200 information technology contractor roles in China.
Citigroup Services and Technology (China) Limited (CSTC) is a wholly owned subsidiary of Citigroup, established in 2002.
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CSTC operates in three strategic Chinese cities: Shanghai, Guangzhou, and Dalian. As part of Citi's global Operations and Technology network, CSTC provides financial IT services, including software development, testing, and support, as well as financial operations services to Citi's global businesses across more than 20 countries and regions, including major financial centers like New York, London, Singapore, and Hong Kong.
Despite these changes, Citi maintains its strategic commitment to the Chinese market, continuing to serve institutional clients and planning to establish a securities unit to expand its services in the country.