Citi plans to reduce its workforce in China by 3,500 tech employees as part of a significant restructuring of its global operations.
The layoffs will primarily impact the information technology services department, which is responsible for software development, testing, maintenance, and operational support for Citi’s international business. The bank has indicated that some positions may be transferred to locations in the United States and other regions, though specific details have not been disclosed.
“China has always played a crucial role in Citi’s global network and business development. We remain committed to serving our corporate and institutional clients in China and addressing their cross-border banking requirements,” stated Marc Luet, president of Citi for Japan, North Asia, and Australia.
This shift occurs against the backdrop of growing tensions between China and the United States, exacerbated by trade tariffs imposed during Donald Trump’s administration, which have strained relations between the two nations.
Additionally, in May, Citi engaged former U.S. Trade Representative Robert Lighthizer to provide guidance on tariff-related matters. Lighthizer was notable for his role during Trump’s first term, where he implemented tariffs on China and negotiated updates to the North American Free Trade Agreement (NAFTA) with Canada and Mexico.
A recent survey by the American Chamber of Commerce in China highlights that the percentage of U.S. companies contemplating a relocation of manufacturing or sourcing from China has reached an unprecedented high, particularly as Trump embarks on his second term.