New York, Jan 13, 2026, 21:40 EST
- Citigroup is set to slash roughly 1,000 positions this week as CEO Jane Fraser drives forward a multi-year restructuring plan
- BlackRock plans to eliminate around 250 jobs, approximately 1% of its workforce, citing a routine efficiency review
- Citi shares slipped roughly 1.2% in late trading, while BlackRock saw little movement
Citigroup (C) plans to slash roughly 1,000 positions this week, according to a source who spoke to Reuters. CEO Jane Fraser continues to push for cost reductions and improved returns at the bank.
Timing is key. As big financial firms approach earnings, investors remain fixated on expense lines, not just top-line revenue, following years of ramped-up spending on controls and systems.
BlackRock (BLK), the world’s largest asset manager, announced plans to cut roughly 250 jobs, about 1% of its global staff, calling it a routine move to boost efficiency. CEO and co-founder Larry Fink has been steering the company toward private markets—investments outside public exchanges.
Bloomberg reported that BlackRock is trimming jobs across its investment and sales departments, indicating the layoffs go beyond just back-office positions.
Citi didn’t reveal how many jobs it plans to cut but said its headcount will continue to decline into 2026. A spokesperson told Human Resources Online the bank is tweaking staffing and locations, pointing to “efficiencies we have gained through technology.” They added, “We are grateful for the contributions these colleagues have made to Citi.” Human Resources Online
Citi reported around 229,000 full-time employees at the close of 2024, per its latest annual filing. The bank plans to slash 20,000 jobs by the end of 2026, a target set two years ago. Fraser’s late-2023 strategy focuses on boosting earnings and tightening up data governance — essentially how the bank handles and verifies its information — along with risk management. This revamp has triggered departures in wealth management and tech divisions, while Gonzalo Luchetti has stepped in as CFO, replacing Mark Mason. Citi runs roughly 650 U.S. branches, mostly clustered in six big metro areas, and will release its Q4 earnings on Wednesday.
In late New York trading, Citi shares slipped roughly 1.2%, with BlackRock holding steady.
But cost cuts can backfire. Severance expenses, employee turnover, and operational disruptions can spike fast—especially with regulators scrutinizing controls and data management closely.
At this stage, both companies describe the layoffs as routine adjustments rather than strategic pullbacks. That said, the scale and duration of these cuts will draw closer scrutiny once earnings reports begin to roll in.
