Wall Street Faces Layoff Wave: Citigroup and BlackRock Join Job Cuts

Citigroup to Cut About 1,000 Jobs This Week Amid Prolonged Underperformance
BlackRock Also Reduces Workforce by 1% Globally

Workforce restructuring is sweeping across the U.S. financial sector. Following BlackRock, the world's largest asset manager, which has begun layoffs, Citigroup is also set to cut about 1,000 jobs, signaling that Wall Street's workforce downsizing is gaining momentum.

Larry Fink, Chairman and Chief Executive Officer (CEO) of BlackRock, is attending the 'Global Financial Leaders Investment Summit' held in Hong Kong, China, on November 4 last year. Photo by Reuters Yonhap News Agency

According to Bloomberg News on January 12 (local time), citing sources who requested anonymity, Citigroup plans to cut around 1,000 jobs this week. This round of layoffs is part of a restructuring plan announced two years ago, with the company having stated its intention to eliminate a total of 20,000 positions by the end of this year. Citigroup has long struggled with underperformance compared to other major U.S. banks.

According to Reuters, as of December 31 last year, Citigroup had approximately 229,000 employees. Since taking office in 2021, CEO Jane Fraser has been driving organizational restructuring to cut costs and improve profitability, including a significant scaling back of the company's overseas retail banking operations.

In a statement, Citigroup said, "We will continue workforce reductions in 2026," explaining that the current adjustments reflect a realignment of headcount, work locations, and expertise to meet current business demands, as well as efficiencies gained through technological adoption.

BlackRock has also recently initiated layoffs affecting several hundred employees. According to Bloomberg, the scale of this layoff represents about 1% of BlackRock's global workforce. Sources say that around 250 employees are affected, including staff from both investment and sales divisions.

A BlackRock spokesperson commented, "Making BlackRock a better company is always a top priority," adding, "Each year, we adjust our resources to align with company goals and make decisions to effectively support our clients now and in the future."

This workforce reduction comes as BlackRock CEO Larry Fink undertakes a business restructuring and accelerates the expansion of the company's alternative investment division. After acquiring a private credit management firm for $12 billion in July last year, BlackRock has been integrating new management into the organization and preparing a new lineup of funds targeting high-net-worth individuals. BlackRock also carried out two rounds of layoffs last year, each affecting about 1% of its total workforce.

Additionally, Bloomberg reported that UBS, Switzerland's largest bank, will begin layoffs this month and plans further reductions by the end of the year.