Citigroup stock falls as Jane Fraser plans layoffs, $800 million spent
Citigroup's stock dropped 4.3% to $134.66 on Tuesday as CEO Jane Fraser announced plans for more job cuts to speed up the bank's restructuring.
The company is putting extra money into tech and AI this year, which means even more layoffs are coming.
CFO Gonzalo Luchetti shared that Citigroup has already spent $800 million on severance so far, and expects that number to rise as they push for efficiency.
Citigroup keeps 10%-11% return target
Even with all these changes, Citigroup is sticking to its full-year profit targets, aiming for a 10% to 11% return on tangible common equity.
Luchetti says their efficiency ratio will hover around 60% in 2026 because of increased investments and severance costs meant to boost productivity down the line.
Fraser remains optimistic, saying these moves should lead to sustainable profits and keep shareholders happy in the future.