Citigroup plans to cut 3,500 tech roles in China as slowing economy hamstrings operations

Along with other US financial firms, Citigroup has announced plans to reduce 3,500 technology-related jobs in China as part of worldwide cost-cutting initiatives in response to economic uncertainty. The layoffs are set to happen in the Shanghai and Dalian Citi Solution Centers of the bank, and are scheduled to be finalized by the beginning of the fourth quarter.

According to a Thursday CNBC insight, the layoffs primarily affect roles within the information technology services unit. These include positions involved in software development, testing, maintenance, and various operational support functions for Citigroup’s international operations. 

In its statement, Citi explained that some of these roles would be relocated to other technology hubs, though it did not disclose which centers would absorb the positions or how many jobs would be transferred.

Bank reduces global workforce 

The recent move in China is part of a global restructuring initiative announced by Citigroup in January 2023, which includes plans to cut 10% of its global workforce, approximately 20,000 employees. 

According to CEO Jane Fraser, the plan is to simplify the bank’s operations in order to increase profits and get back on track with competing banks.

Citi has already made similar workforce reductions in the United States, Indonesia, the Philippines, and Poland. The firm also scaled down its physical office space in several of these markets.

Yet, even after the job cuts, Citi promised to maintain and develop business ties in China. 

“We will continue to firmly serve corporate and institutional clients in China and serve their cross-border banking needs,” said Marc Luet, Citi’s president for Japan, North Asia, and Australia.

Industry-wide restructuring after months of economic headwinds

Much like Citigroup, other banks, particularly those with strong regional presence in China and broader Asia, have begun to implement their own cost-reduction plans.

Hong Kong-based Hang Seng Bank, a subsidiary of HSBC, recently announced a business restructuring that will impact about 1% of its core staff. The layoffs, led by HSBC Group CEO Georges Elhedery, could slash costs by $1.8 billion by the end of 2026. 

The bank attributed the job reductions to a deteriorating global economy and a rise in non-performing loans from China’s property sector.

Meanwhile, US banking giants such as JPMorgan and Bank of America have started annual performance reviews resulting in job cuts. Bank of America has reportedly eliminated 150 positions in its investment banking division in 2025 as part of routine staffing adjustments.

A recent business survey by the American Chamber of Commerce in China revealed that a record number of US firms are considering relocating their manufacturing or sourcing operations outside China. 

The companies are worried about trade tensions between Beijing and Washington, exacerbated during President Donald Trump’s imposition of triple-digit tariffs on several Chinese imports in May.

ppl living in the streets, threat of war with China, mass layoffs, sounds familiar, but, by god the markets must go up – insanity https://t.co/BvQkdyF9eg

— Terry S. (@TerrySquibb1) June 3, 2025

Some Chinese workers like Liu Shengzun, a 42-year-old former factory worker in Guangdong, lost two jobs within one month this spring. The manufacturing plants where he worked, one for lighting products and another for footwear, were forced to trim down operations due to the trade costs. 

“It’s been extremely difficult this year to find steady employment,” said Liu, who previously earned up to 6,000 yuan per month, but now cries that he “struggles to afford food.”

Data from China’s National Bureau of Statistics indicates the number of urban workers reemployed after layoffs rose to 5.15 million by December 2024, up from 3.88 million in September. The number is now projected to go down significantly by the end of Q2 2025.