NEW YORK, Jan 23, 2026, 14:27 (EST) — Regular session
- Citigroup shares slipped roughly 1.7% in afternoon trading following reports of additional job cuts
- March layoffs are set to target senior positions, following about 1,000 job cuts already made this month
- Investors are focused on interest rates and Washington’s efforts to regulate credit-card pricing
Shares of Citigroup dropped 1.7% to $113.71 on Friday afternoon, sliding as low as $113.22 and ending the day down $1.95. The decline followed a Reuters report that the bank plans additional layoffs in March, after cutting about 1,000 jobs this month. The next wave is expected to target managing directors and other senior roles. CFO Mark Mason told analysts, “We have been reducing headcount and expect that trend to continue,” projecting the workforce will shrink to 226,000 by the end of 2025, down from 240,000 in 2022, following $800 million spent on severance last year. (Reuters)
The staff cuts come as the market begins to view Citi once more as a turnaround play—though now, every cost detail counts. Investors want to see savings reflected in the numbers without rattling the core business or scaring off revenue.
Bank stocks might face their next shake-up soon. The Federal Reserve is widely expected to keep rates unchanged Wednesday after its two-day meeting. A packed earnings slate — featuring Apple, Microsoft, Meta, and Tesla — could shift risk appetite. “It’s been a little bit of a short but steep roller-coaster ride,” said Yung-Yu Ma, chief investment strategist at PNC Financial Services Group. (Reuters)
Policy risk remains front and center. JPMorgan CEO Jamie Dimon slammed the idea of capping credit-card interest rates, calling it an “economic disaster” that “would remove credit from 80% of Americans.” Brian Jacobsen, chief economic strategist at Annex Wealth Management, said such a cap seems “highly unlikely” anytime soon since it would require congressional approval. (Reuters)
The rate debate was already rattling the sector on Friday. First Citizens BancShares dropped after projecting 2026 net interest income — the gap between loan earnings and deposit costs — below Wall Street forecasts. The KBW Nasdaq Regional Banking Index fell about 3% in afternoon trade. “Little good news from the financials today,” said Gabelli Funds portfolio manager Macrae Sykes. (Reuters)
For Citi, today’s drop highlights how the stock remains sensitive to headlines — one moment it’s cost cuts, the next it’s rates and regulation. Many investors remain torn over whether this signals a more stable Citi or simply a busier news environment.
There’s a downside risk as well. Cutting jobs can unsettle teams and weaken client service, while a stricter approach to credit-card pricing would squeeze a lucrative segment across the sector. If rates drop faster than anticipated, the boost from higher loan yields could vanish, often hitting earnings sooner rather than later.
The next key date is the Fed meeting on Jan. 27–28, with the policy decision and press conference set for Jan. 28. After bonus season, Citi traders expect updates on the scale and scope of March layoffs. (Federalreserve)
