Citigroup to shed 200 IT contractor jobs in China
Citigroup is eliminating up to 200 IT contractor positions in China, reported Reuters, citing undisclosed sources.
The news agency further noted that the bank seeks to hire more full-time staff to improve risk management and data governance.
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This decision follows a fine imposed by US bank regulators last year July, amounting to $136m, for Citigroup’s “insufficient progress” in addressing data management issues.
Last week, approximately 100 IT contractors at Citigroup Services and Technology China were informed that their contracts would not be renewed, with another 100 anticipated to be notified shortly.
The sources noted that Citigroup Services and Technology China, founded in 2002, employs a total of around 3,000 individuals.
It is currently unclear how many of these employees are contractors.
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By GlobalDataThe unit in question provides support for Citigroup’s global operations, which span 20 countries and regions, including New York, London, and Hong Kong.
Citi was quoted by Reuters as saying: “As part of the regular business operations of Citigroup Services and Technology (China) Limited (CSTC), we review our HR strategy on an ongoing basis, including decisions about renewing (fixed term) employment contracts.”
“When decisions are made on non-renewal of fixed term contracts, this will be done in compliance with applicable laws, regulations and procedures. We are committed to supporting impacted employees,” the bank added.
Earlier this year, Citigroup head of technology Tim Ryan, revealed plans to reduce the bank’s reliance on external IT contractors, lowering their share of the workforce from 50% to 20%.
In China, the bank is offering “severance package” to most of the affected contractors, calculated based on their length of service.
Citigroup’s banking operations in China extend beyond IT, with plans underway to set up a securities division.
A spokesperson for Citigroup in Hong Kong stated that the bank’s business strategy and commitment to serving both local and global clients in China remain steadfast.
For the first quarter of 2025, Citigroup reported a net income of $4.1bn on revenues of $21.6bn.
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