Citi shares drop as CEO Fraser plans deeper job cuts this year
Citigroup shares slumped over 5% after CEO Jane Fraser indicated the bank would accelerate job cuts and technology investments, increasing costs in the second half of 2026. The bank's headcount fell by 5,000 in the past three months to 219,000, and it has already spent US$800 million on severance costs this year. CFO Gonzalo Luchetti said the bank expects to incur more severance expenses and ramp up investments, but declined to provide details on the scale of job cuts. Analysts expressed uncertainty about the costs, with Wells Fargo's Mike Mayo saying investors dislike the lack of clarity. The bank maintained its full-year return on tangible common equity forecast at 10-11%, while its efficiency ratio is expected to be about 60% for the year, higher than the first half.
Wire timeline
Citi shares drop as CEO Fraser plans deeper job cuts this year
Citigroup shares slumped over 5% after CEO Jane Fraser indicated the bank would accelerate job cuts and technology investments, increasing costs in the second half of 2026. The bank's headcount fell by 5,000 in the past three months to 219,000, and it has already spent US$800 million on severance costs this year. CFO Gonzalo Luchetti said the bank expects to incur more severance expenses and ramp up investments, but declined to provide details on the scale of job cuts. Analysts expressed uncertainty about the costs, with Wells Fargo's Mike Mayo saying investors dislike the lack of clarity. The bank maintained its full-year return on tangible common equity forecast at 10-11%, while its efficiency ratio is expected to be about 60% for the year, higher than the first half.
The Business Times