Citigroup is cutting hundreds of jobs across the globe, as the company gears up to replace more manual processes with tech investments, according to the company's CEO.
The cuts, which will affect less than 1% of Citigroup's 240,000 employees, will impact staff in operations, technology and investment banking, in an attempt to further ‘streamline' and ‘automate' more processes.
The news comes just a week after the company banned ChatGPT, and rival Goldman Sachs cut 3,200 jobs in what is described as one of the most ‘brutal' layoffs of 2023 to date.
Manual Jobs Are Out, Machines Are In
As part of its transformation initiative, Citigroup cut hundreds of jobs this week, as the company moves forward with its plan to achieve more ‘efficiency'. The job cuts, announced in Bloomberg, will reportedly impact staff in operations, technology and investment banking. However, the instability of the economy will naturally spark concerns for the staff in the company who remain.
“As our investment in transformation and control initiatives mature, we expect to realize efficiency as those programs transition from manually intensive processes to technology-enabled ones, Jane Fraser, Citigroup Chief Executive Officer
According to Bloomberg, the company has spent billions investing its technology division, with the intention of reducing its reliance on manual processes, meaning job cuts at this time are not only standard, but were arguably inevitable.
We’re streamlining our processes and making them more automated, whilst improving the quality and accessibility of our data. This will make us a better bank.”
With the economy at an all-time low and managers being asked to ‘not manage' in some businesses, companies are doing anything they can to find ways to alleviate the stress of economic downturn.
How Businesses Are Maximizing Technology in 2023
Citigroup isn't the only company that's investing in technology. According to Microsoft 90% of businesses are interested in investing in AI-powered toolsto help streamline processes and eliminate repetitive tasks. We also know that 43% of professional workers are using ChatGPT for work-related tasks — 68% of which are doing so without their manager's knowledge.
But AI isn't the only type of technology businesses are reportedly investing in. According to Microsoft, 77% of businesses want greater access to tools like Wix and Smartsheet – ‘no and low-code' tools to help build better digital solutions – with 84% believing the ability to use custom-built apps would help improve collaboration.
Businesses interested in optimizing their workflow are also investing in top project management tools, and reliable video conferencing apps to cut costs, and improve communication and productivity. While company layoffs are still expected to continue, it's clear that investing in top talent with tech skills will be a priority, regardless of the industry.