The downsizing was laid out in a presentation released in connection with the New York-based lender’s fourth-quarter results in which it reported a large loss.

The move will put the headcount at about 180,000 in the 2026 time period, down from 240,000 at the end of 2022 – while also reflecting the expected spinoff of Citi’s Mexico subsidiary, Banamex.

Citi’s chief executive officer Jane Fraser has unveiled a corporate overhaul with five business lines instead of two.

The bank has also significantly shrunk its global consumer banking footprint, divesting assets in China, Vietnam, and other markets.

“Last month, we announced consequential changes that align our organisational structure with our strategy and changes how we run the bank,” Fraser said.

“When completed, we will have a simpler firm that can operate faster, better serve our clients, and unlock value for our shareholders.”

Overall, Citi reported a fourth-quarter loss of US$1.9 billion compared with profits of US$2.5 billion in the 2022 period. Revenues fell 3% to US$17.4 billion.

The results were weighed down by several cost items, including US$780 million for severance and other costs expenses connected to the reorganisation.

Citi’s chief financial officer Mark Mason said the fourth-quarter charge corresponds to 7,000 job cuts over the next year.

Other one-time costs included a US$1.7 billion special assessment to replenish a Federal Deposit Insurance Corporation (FDIC) emergency fund after the failures of Silicon Valley Bank and Signature Bank.

Citigroup also booked reserves of US$1.3 billion associated with risks connected to Argentina and Russia, plus a hit of US$880 million from the devaluation of the Argentine peso.

Shares of Citi rose 0.8% in morning trading.