Citigroup Slashes 3,500 Tech Jobs in China: A New Wave of Global Banking Restructuring

Amid rising global economic uncertainty and a slowdown in major markets, Citigroup—one of the world’s largest and most prominent banks—announced this week a significant reduction of around 3,500 technology jobs in China. This move, expected to be completed by early Q4 2025, signals the continuation of widespread cost-cutting and organizational streamlining across the banking sector, as international financial institutions face mounting pressure to adapt their structures to the challenges of a changing world.

The Details – Focus on IT and Global Operations
The job cuts are concentrated primarily within Citi’s information technology services units in Shanghai and Dalian—major tech hubs for China’s financial and tech sectors. These teams have been responsible for the development, testing, and maintenance of critical software systems that support Citi’s global operations across more than 160 countries. The company notes that some roles will be relocated to other Citi technology centers worldwide as part of a broader risk-diversification and cost-efficiency strategy. Specific details about new job locations have not been disclosed, but this step aligns with a broader trend of systematic restructuring in the banking industry.

A Global Transformation – Citi’s New Strategic Direction
These layoffs are part of a wide-reaching plan announced in January 2024 to cut 10% of Citi’s global workforce—about 20,000 employees—by the end of 2025. Citi has already implemented similar reductions at sites in the US, Indonesia, the Philippines, and Poland. The strategy aims to create a leaner, more profit-oriented structure, suited to an era of heightened competition and rapid digitization. CEO Jane Fraser has emphasized that these changes are essential for restoring investor confidence after several years of underperformance relative to top US peers like JPMorgan and Bank of America.

Economic Impact – Profitability Pressures, Regulation, and Sectoral Risks
The banking sector has faced an unprecedented series of challenges over the past year: slowing global growth, higher regulatory costs, dramatic changes in the labor market, and escalating financial risks. The new US tariff policy under the Trump administration has increased business uncertainty and negatively impacted global trade volumes—particularly with China. At the same time, China’s real estate sector is undergoing a major crisis, leading foreign banks—including Citigroup—to greater exposure to bad loans and potential losses.

A Global Trend – Industry-Wide Job Cuts
This is not just a Citigroup story; the wave of cuts is industry-wide. Bank of America recently laid off 150 investment bankers in the US. HSBC reported a reduction of around 1% of its core staff and set a cost-saving target of $1.8 billion by the end of 2026. Major players like JPMorgan and Goldman Sachs are also reassessing their workforce structure to better cope with evolving economic risks. Banks focusing on Hong Kong and Mainland China are especially vulnerable due to weakening demand, high real estate exposure, and regulatory complexity.

Labor Market Dynamics – Between Layoffs and Relocation
Beyond layoffs, some of the technology roles at Citi’s Chinese development centers will be transferred to other global hubs, including the US, India, Europe, and elsewhere in Asia. The goal is to build a more agile workforce, reduce costs, and limit overreliance on any single market. However, such moves can lead to local job losses, knowledge gaps, and social challenges—especially in economies already facing structural employment issues.

The Future of Banking – More Than Just Cost Cutting
Citigroup’s job cuts—and similar moves by its competitors—reflect the deeper transformation underway in global banking: a shift from traditional infrastructure to automated, digital systems, a greater focus on technological innovation, and the streamlining of operations. Banks are being forced to adapt rapidly to unstable business environments, changing regulations, and cross-border risks, while seeking new engines of growth and digital opportunities.

Conclusion – Will Cost-Cutting Be Enough?
Citigroup’s workforce reduction is just one aspect of a broad restructuring trend now sweeping through global banking. Institutions are being pushed to act with greater caution, reduce risk exposure, streamline operations, and look for new sources of growth. Given current trends, this wave of efficiency-driven change is expected to continue, especially amid persistent labor market challenges, real estate risks, and ongoing trade policy uncertainty.