NEW YORK, Jan 29, 2026, 15:18 ET — During regular trading hours.
- Citigroup shares climbed roughly 0.3% in afternoon trading, outpacing the wider market’s performance.
- According to a Reuters report, the bank is set to slash roughly 1,000 positions as it continues rolling out a broader workforce reduction strategy.
- Citi has filed to shift a former executive’s harassment lawsuit into arbitration, a court document reported by Reuters shows.
Shares of Citigroup Inc edged up 0.3% to $114.53 in afternoon trading Thursday, after fluctuating between $113.40 and $116.32. The financial sector ETF rose, contrasting with declines in the S&P 500 ETF and Nasdaq-100 ETF.
The stock is holding up as investors reassess Citi’s multi-year cost-cutting strategy in action. A source familiar with the situation told Reuters the bank plans to slash roughly 1,000 jobs, part of a broader effort announced two years ago to trim its workforce by 20,000. (Reuters)
The timing is notable as Citi fights to keep a workplace-culture lawsuit out of court. The third-largest U.S. bank asked a federal judge in Austin, Texas, to push a former managing director’s sexual harassment suit into arbitration, insisting there’s “absolutely no factual or legal basis” for the claim. The plaintiff’s attorney slammed the move as “retaliatory,” accusing Citi of “bullying and intimidation tactics.” (Reuters)
Rate expectations remain a key factor. On Wednesday, the Federal Reserve kept its benchmark rate steady at 3.50%-3.75%, with Chair Jerome Powell noting the economy had once again “surprised” with its resilience. Oxford Economics’ Michael Pearce anticipates an “extended pause.” For lenders, changes in policy rates influence funding costs and the prospects for loan growth. (Reuters)
For Citi, job cuts remain one of the rare near-term moves investors can reliably factor in. While they trim expenses, they also risk disrupting staff and dragging down execution if key areas of the business get thinned out.
Citi revealed new capital markets filings. Citigroup Global Markets Holdings Inc, part of Citi, submitted a preliminary pricing supplement for callable equity-linked structured notes tied to the lowest-performing index among the Nasdaq-100, Russell 2000, and S&P 500. These notes mature in February 2028 and come with a full guarantee from Citigroup Inc, according to the filing. (SEC)
Structured notes are debt securities with coupons and final payouts tied to a formula based on market performance — here, major stock indexes. Banks hold them widely on their balance sheets and trading desks, but they rarely impact the parent company’s stock unless new issuance signals a larger change in demand or risk tolerance.
Citi shares face the risk that the legal battle drags on or that the bank loses the arbitration. On top of that, a worsening economic slowdown or a sudden change in rate expectations could slam bank stocks, even if cost-cutting efforts continue as planned.
Traders are gearing up for Friday’s U.S. producer price index (PPI) report for December, scheduled for 8:30 a.m. ET. Any unexpected inflation data could shift rate expectations once more. (Bls)
