NEW YORK, Jan 13, 2026, 18:48 EST — After-hours
Shares of Citigroup Inc dropped 1.2% to $116.30 in after-hours trading Tuesday. A source told Reuters the bank plans to cut around 1,000 jobs this week, part of a broader effort to reduce its workforce by 20,000 by the end of 2026. “These changes reflect adjustments we’re making to ensure our staffing levels, locations and expertise align with current business needs,” said a Citi spokesperson. The bank employed roughly 229,000 full-time workers as of Dec. 31, 2024, per its latest annual report. (Reuters)
The timing is crucial. Citi approaches its earnings report, a moment when investors zero in on expenses, credit costs, and if management can continue streamlining operations without losing steam.
Traders are now factoring in an added layer of policy risk in consumer finance. This shift has diverted focus from the typical daily rate fluctuations to the potential impact of a new political battle on lenders reliant on credit cards.
President Donald Trump has put forward a one-year limit of 10% on credit card interest rates starting Jan. 20, drawing criticism from lenders. JPMorgan CFO Jeremy Barnum called the cap “very bad for consumers, very bad for the economy.” Meanwhile, Brian Shearer from Vanderbilt Policy Accelerator said banks have “a huge amount of profit that could absorb a rate cut.” (Reuters)
Citi also highlighted a key update for investors: its board approved a quarterly dividend of $0.60 per common share on Monday. The payout is set for Feb. 27, with the record date on Feb. 2. (Citi)
The bank faces a legal cloud as well. On Monday, the U.S. Supreme Court refused to hear Citi’s appeal to dodge a lawsuit claiming it was responsible for over $1 billion in losses linked to alleged fraud at the bankrupt Mexican oil-services firm Oceanografia. (Reuters)
Wall Street analysts remain skeptical about how quickly a headline could turn into law. TD Cowen analysts pointed out that a card rate cap “can only be done by Congress, not executive order,” and they rated the chances of a federal cap passing as low. (Reuters)
Signs of caution rippled through the sector on Tuesday. JPMorgan slipped 4.2%, with Bank of America and Wells Fargo retreating 1.2% and 1.5%, respectively. Visa and Mastercard, key players in card payments but without interest income from loans, tumbled 4.5% and 3.8%.
Citi’s immediate concern is more specific. Investors are zeroed in on how much of the cost pressure will carry into 2026, and if credit quality is staying steady as consumers face rising borrowing expenses.
Any slip-up on expenses or a tougher credit outlook could slam the stock fast, especially as policy talk is already casting a shadow over the sector’s sentiment.
Citigroup plans to report its fourth-quarter results around 8 a.m. ET on Wednesday, Jan. 14, followed by a conference call at 11 a.m. ET. (Citi)
