Tech layoffs: Citigroup to slash IT contractors by means of 30% amid regulatory overhaul

Citigroup has introduced plans to noticeably cut back its reliance on IT contractors, chopping their numbers by means of 30%. This transfer is a part of a broader technique to improve inside era functions and deal with regulatory considerations over knowledge governance and chance control.
These days, 50% of Citigroup’s IT body of workers is composed of exterior contractors. The financial institution objectives to cut back this determine to twenty%, changing contractors with full-time workers. As a part of this transition, Citigroup plans to extend its inside IT body of workers to 50,000 by means of the top of 2025, up from 48,000 in 2024. The corporate can even consolidate its IT operations, transferring groups from Rutherford, New Jersey, to a brand new facility in Jersey Town.
“Citi is rising our inside era functions to enhance our technique to support protection and soundness, allow income enlargement and force efficiencies,” the corporate advised Reuters.

Citigroup layoffs: Reason why in the back of the process cuts

The verdict comes within the wake of regulatory consequences and a $136 million effective imposed on Citigroup in 2024 for deficiencies in knowledge governance. Moreover, a contemporary $22.9 million fraud incident involving exterior contractors highlighted the dangers related to outsourcing. Citigroup’s management has emphasised the wish to support operational protection and soundness by means of bringing essential era purposes in-house.
Whilst the transfer might result in process losses amongst contractors, Citigroup’s funding in inside groups objectives to verify long-term steadiness and compliance with regulatory requirements.