Citigroup to Cut 3,500 Tech Jobs in China as Part of Global Restructuring

Citigroup Inc. announced plans to reduce its workforce by approximately 3,500 employees at its two major China-based technology centers in Shanghai and Dalian. The move is part of a broader initiative to streamline global tech operations and strengthen risk and data management frameworks.

The job cuts, expected to be completed by early Q4 2025, will impact the China Citi Solution Centres. While Citi did not disclose exact figures, the bank confirmed that some roles will be relocated to other global technology hubs.

This workforce reduction aligns with Citi's ongoing efforts to restructure its global tech division and reduce dependency on external IT contractors. In March, the bank revealed internal plans to phase out thousands of contractor positions in favor of direct hires, aiming to enhance regulatory compliance and data governance. The strategy followed regulatory penalties over deficiencies in Citi’s internal controls and risk management systems.

Last month, Reuters reported that Citi had already begun reducing around 200 IT contractor positions in China, signaling the start of this transformation. The bank has since accelerated its internal hiring strategy to build more robust in-house IT capabilities.

Citigroup’s decision reflects a growing trend among global financial institutions to consolidate operations and enhance technological oversight. By shifting focus toward long-term IT investment and internal expertise, Citi aims to improve operational resilience while navigating increasingly complex regulatory environments.

The tech job cuts in China represent a significant step in Citi’s ongoing restructuring, marking a pivotal shift in how the bank manages its global technology infrastructure.