Citigroup's plan to reduce its global workforce by roughly 60,000 employees by the end of 2026 is emerging as one of the clearest signals yet that job losses across financial services are becoming structural rather than cyclical. The cuts, confirmed by Mark Mason, would bring the bank's headcount to about 180,000 and reflect a transformation driven by automation, artificial intelligence and a narrower strategic focus, rather than an economic downturn.
The reductions include about 40,000 roles expected to exit with the planned initial public offering of Banamex, Citigroup's Mexican retail banking arm. The remainder will come from internal restructuring as the bank pares back operations, flattens management layers and deploys technology across functions that once relied heavily on human labor.
Citigroup said the changes are permanent and strategic. "We will continue to reduce our headcount in 2026," the bank stated. "These changes reflect adjustments we're making to ensure our staffing levels, locations, and expertise align with current business needs; efficiencies we have gained through technology; and progress against our transformation work."
Unlike crisis-driven layoffs seen during the 2008 financial meltdown or the pandemic shock of 2020, the current wave is designed to endure. Executives across the industry increasingly describe automation and AI not as productivity tools layered onto existing roles, but as replacements for entire job categories that may not return.
The pattern extends well beyond Citigroup. BlackRock, the world's largest asset manager, has cut about 250 employees over the past year while integrating its $12 billion acquisition of private-credit specialist HPS Investment Partners. The firm has reduced staffing in investment and sales teams even as it expands in alternative assets, highlighting a shift toward fewer, more specialized roles.
In financial technology, Block laid off 931 workers last year, roughly 8% of its workforce. The cuts targeted employees rated "below" internal performance standards, eliminated teams deemed "off strategy," and removed 80 management positions as the company flattened its hierarchy.
Research firms say these moves are part of a broader recalibration of financial labor. Brookings Institution warned in a 2025 analysis that middle-office and operations workers face a stark choice: "Reskill or risk being functionally sidelined." Tasks involving routine processing, reconciliation and reporting are increasingly being absorbed by software.
Bloomberg Intelligence estimates that global banks could shed as many as 200,000 jobs over the next three to five years as AI spreads deeper into core operations. The roles most exposed are in back-office, middle-office and operational functions where repetitive processes dominate.
