Citigroup has declared its intention to drastically limit the number of IT contractors it uses by thirty percent. This action is a component of a larger plan to improve internal technological capabilities and resolve regulatory issues with risk management and data governance.
At the moment, outside contractors make up half of Citigroup’s IT staff. By substituting full-time staff for contractors, the bank hopes to lower this percentage to 20%. Citigroup intends to expand its internal IT workforce from 48,000 in 2024 to 50,000 by the end of 2025 as part of this shift. Additionally, teams from Rutherford, New Jersey, will relocate to a new building in Jersey City as part of the company’s consolidation of its IT operations.
“To complement our objective to increase safety and soundness, facilitate revenue growth, and drive savings, Citi is expanding its internal technological capabilities,” the business told Reuters.
Layoffs at Citigroup: The rationale for the layoffs
The ruling follows regulatory sanctions and a $136 million punishment that Citigroup was hit with in 2024 for its data governance shortcomings. A recent $22.9 million fraud case involving outside contractors also brought attention to the dangers of outsourcing. The leadership of Citigroup has underlined the necessity of bringing crucial technology operations in-house in order to improve operational safety and soundness.
Contractors may lose their jobs as a result of the change, but Citigroup’s investment in internal teams is meant to guarantee stability over the long run and regulatory compliance.
