Citi plans to slash 3,500 tech roles in China as global banks cut costs

Citigroup said Thursday it plans to cut around 3,500 technology positions in China, in the latest move by a major U.S. bank to streamline global operations and reduce costs.

The reduction of staff at the China Citi Solution Centers in Shanghai and Dalian is expected to be completed by the start of the fourth quarter this year, Citi said in a statement.

The jobs affected are mostly in the information technology services unit, providing software technology development, testing and maintenance and operational services for Citi's global business.

The company said some of the roles will be moved to Citi's technology centers elsewhere, without specifying the numbers of jobs or specific locations.

The layoffs in China come as Citi continues to work through a broader plan announced January last year, to reduce 10% of its workforce, or about 20,000 employees globally. It has moved to streamline operation and downsize office in the U.S., Indonesia, the Philippines and Poland, the statement said.

Led by CEO Jane Fraser, Citi has undertaken a sweeping reorganization aimed at improving profitability and restoring investor confidence after years of lagging behind major U.S. banking peers.

A slew of major global banks are under fresh pressure to trim costs against the backdrop of deteriorating global economic outlook as U.S. President Donald Trump's tariff policies spark concerns for declining trade activity.

Hong Kong-based Hang Seng Bank, a subsidiary of HSBC, said last month it was restructuring business and streamlining duplicate roles in a move that would lead to job losses for about 1% of its "core staff."

The job cuts were part of a cost-cutting drive, led by HSBC Group CEO Georges Elhedery, that aims to cut expenses by $1.8 billion by the end of 2026.

The Hong Kong and mainland China-focused lenders have reported rising bad loans over the last few years due to their relatively high exposure to China's troubled property sector.

Several Wall Street banks including JPMorgan and Bank of America have already begun the annual process of terminating underperforming employees.

Bank of America has reportedly eliminated 150 banker positions in its investment banking unit, following similar exercises at rivals JPMorgan and Goldman Sachs.