New York, January 15, 2026, 20:02 EST
- Jane Fraser told staff their performance will be evaluated based on results as Citigroup moves forward with job cuts
- Citi plans more job cuts, linking them to increased automation and broader AI adoption throughout the bank
- This comes after Citi’s full-year results and a fresh drive to boost returns by 2026
Citigroup CEO Jane Fraser told employees the bank will be “judged on our results” and flagged that automation and AI — artificial intelligence software that automates tasks — will reshape jobs firmwide, according to an internal memo. Citi plans to cut roughly 1,000 jobs this week, part of a broader effort to slash up to 20,000 positions by the end of 2026 and achieve $2.5 billion in cost savings. (Business Insider)
The update came shortly after Citi released its full-year 2025 results and flagged what investors should focus on next. In a filing, Fraser said Citi steps into 2026 with “visible momentum” and aims to hit a 10% to 11% return on tangible common equity — a key profitability measure excluding goodwill and other intangibles. (Citi)
Investors are urging Citi to narrow the performance gap with its larger rivals, following years of restructuring and heavy investment in controls that have dragged on returns. “The turnaround story for Citi continues,” said David Wagner, head of equity and portfolio manager at Aptus Capital Advisors, after the bank surpassed quarterly profit estimates thanks to stronger dealmaking. (Reuters)
Bloomberg, citing sources familiar with the situation, reported earlier this week that Citi intends to slash roughly 1,000 jobs as Fraser focuses on controlling costs and boosting returns. The firm had 227,000 employees as of the end of September. (Bloomberg)
Fraser’s memo told employees “the bar is raised” and signaled an end to the lingering “old, bad habits” as Citi pushes for a leaner culture. She called for a “commercial mindset”—basically, capturing a bigger piece of each client’s business—and warned that some roles will be “no longer required” as processes get streamlined. (Fortune)
The squeeze arrives as Citi pushes to gain ground in investment banking, a space where it’s lagged behind larger rivals. According to Bloomberg, Citi’s financial advisory fees jumped 84% in the fourth quarter. The bank also reported a more than 50% increase in annual revenue from mergers, outpacing JPMorgan’s far smaller growth in that segment. (Bloomberg)
Citi is pushing to prove AI is more than just buzz. In its earnings presentation, the bank revealed that over 80% of its “Transformation” programs have reached or are close to their target state. More than 180,000 employees across 84 countries are now actively using Citi’s AI tools as the bank phases out older apps and automates control tasks. (Citi)
The plan isn’t without its risks. Slashing headcount amid a tech overhaul could derail client projects and sap morale. Plus, automation efforts don’t always hit their savings targets on time. If deal flow slows or revenue stumbles, absorbing restructuring costs will get even harder.
Fraser’s message, backed by Citi’s figures, drives home one thing: the bank is shifting from patching issues to demonstrating it can operate leaner while still expanding. The key now is how fast that boost in productivity appears — and if Citi can hold onto talent in sectors where Wall Street’s competition is fierce.
