Citi CEO Warns of More Job Cuts, Demands Culture Shift

Citigroup’s chief executive, Jane Fraser, has issued a firm warning that additional job cuts and a decisive culture shift are coming as part of the bank’s ongoing transformation. In an internal memo titled “The bar is raised,” Fraser called for an end to outdated practices and emphasised results over effort, signaling a critical phase in Citigroup’s multiyear plan to modernize operations, improve efficiency, and strengthen competitiveness.

The job reductions are part of a broader strategy to streamline operations and reduce complexity, with the bank targeting up to 20,000 position cuts by the end of 2026. Around 1,000 roles are expected to be eliminated this week alone, marking the next step in a multiyear initiative aimed at reducing costs, increasing operational agility, and reallocating resources toward higher-return businesses.

Fraser stressed that the bank’s future success will be measured by outcomes rather than effort. Employees were told that “we are not graded on effort; we are judged on our results,” reflecting a shift toward a performance-first culture designed to enhance client focus, capture market share, and improve overall returns on capital.

The transformation also includes significant technology and process upgrades, with automation and artificial intelligence reshaping workflows. Some roles will evolve, others may become redundant, and new skills will be required. Fraser highlighted that these changes are critical to making the organisation more scalable and better positioned to compete with more technologically advanced peers.

Financially, the changes come amid modest revenue growth and persistent cost pressures. By reducing headcount and improving operational efficiency, Citi aims to strengthen profitability, particularly in higher-return areas such as investment banking, advisory services, and wealth management. The adjustments are expected to enhance cost discipline and improve the bank’s competitive standing in the market.

Analysts note that Citi’s moves reflect a broader industry trend of workforce realignment in global banking. Many major banks are evaluating headcounts and modernising legacy operations to integrate digital tools and improve productivity. Fraser’s emphasis on abandoning outdated practices is intended to embed a results-driven culture across all business lines while supporting strategic growth initiatives.

Investor focus will likely center on the impact of these workforce changes and cultural shifts on Citi’s financial performance, efficiency metrics, and competitive positioning. The CEO’s message indicates a continued commitment to transformation, operational discipline, and long-term value creation, while the pace and scale of job cuts and cultural realignment will remain a key watch point for 2026.