Citigroup to axe 20,000 jobs after posting £1.8bn Q4 loss

US bank Citigroup said it planned to cut 20,000 jobs as it announced a massive $1.8bn quarterly loss, driven largely by charges ranging from currency exposure in Argentina and Russia to contributions towards the cost of regional bank failures last year.

Results were hit by $3.8bn in combined charges and reserves that Citigroup disclosed in a filing on Wednesday. The figure included a $1.7bn Federal Deposit Insurance Corporation assessment, $1.3bn linked to transfer risk in Russia and Argentina, and $880m associated with the devaluation of the Argentine peso.

Revenue came in at $17.4bn against expectations of $18.7bn.

The company is in the midst of a turnaround effort under chief executive Jane Fraser, who has moved to cut layers of management and staffing and reorganize the business.

“While the fourth quarter was very disappointing due to the impact of notable items, we made substantial progress simplifying Citi and executing our strategy in 2023,” Fraser said in a statement.

Reporting by Frank Prenesti for Sharecast.com