Citigroup CEO Jane Fraser is intensifying performance expectations for the bank’s 200,000+ employees while explicitly connecting ongoing job cuts to artificial intelligence adoption and automation. In a memo titled “The bar is raised,” Fraser outlined her vision for a more competitive, results-driven organization as the bank completes its multi-year “Transformation” initiative.
The bank is maintaining its commitment to eliminate up to 20,000 positions over three years, a plan Fraser announced in early 2024 with projected cost savings of $2.5 billion. According to reports, Citi cut approximately 1,000 jobs earlier this week as part of this ongoing restructuring effort.
Fraser directly addressed the role of technology in reshaping the workforce: “Over time, we can expect automation, AI and further process simplification to reshape how work gets done — some roles will change, new ones will emerge and others will no longer be required,” she wrote in Wednesday’s memo.
Outgoing CFO Mark Mason reinforced the AI-job cuts connection during a media briefing ahead of the bank’s fourth-quarter earnings call. “As we make progress on our Transformation, we’ll see that cost and headcount come down as we continue to improve productivity and tools like AI,” Mason told reporters, adding that headcount would “continue to trend down” in 2025.
The bank reported that more than 80% of its Transformation effort is complete, with the project’s conclusion expected to result in “some overall role reductions” as headcount continues declining. Like other Wall Street institutions, Citi has prioritized amplifying AI adoption across the firm, announcing multiple AI leadership appointments in 2024 to drive its strategy.
Despite the workforce reductions, Citi’s financial performance showed strength. The bank generated approximately $85 billion in revenue in 2025, up 6% year-over-year. Investment banking fees reached nearly $1.3 billion, rising 10% quarter-over-quarter and 35% annually, while advisory fees of roughly $650 million jumped more than 80% compared to the previous year.
Fraser emphasized the shift from restructuring to innovation: “With much of our Transformation behind us, we are shifting our focus to how we can use AI tools and automation to further innovate, re-engineer, and simplify our processes beyond risk and controls.” She also indicated plans to “continue to bring in top talent” for the investment bank, particularly in North America, suggesting selective hiring even as overall headcount declines.
Key Quotes
Over time, we can expect automation, AI and further process simplification to reshape how work gets done — some roles will change, new ones will emerge and others will no longer be required
CEO Jane Fraser wrote this in her Wednesday memo to employees, directly acknowledging that AI and automation will eliminate certain positions while creating others, providing unusual transparency about technology’s impact on the workforce.
As we make progress on our Transformation, we’ll see that cost and headcount come down as we continue to improve productivity and tools like AI
Outgoing CFO Mark Mason made this statement during a media briefing, explicitly linking the bank’s AI investments to ongoing job reductions and establishing a clear cause-and-effect relationship between technology adoption and workforce downsizing.
With much of our Transformation behind us, we are shifting our focus to how we can use AI tools and automation to further innovate, re-engineer, and simplify our processes beyond risk and controls
Fraser stated this during the earnings call with shareholders, signaling that AI’s role at Citi is expanding from the restructuring phase into ongoing operational innovation, suggesting continued workforce implications.
Our Take
Citi’s announcement is noteworthy for its unusual candor about AI’s role in workforce reduction. While many companies discuss AI adoption in abstract terms or emphasize augmentation over replacement, Fraser and Mason have drawn direct lines between AI implementation and job elimination. This transparency, whether intentional or not, provides valuable insight into how major corporations view AI’s near-term impact on employment.
The timing is significant: as AI capabilities accelerate and enterprise adoption matures, we’re entering a phase where productivity gains translate directly into headcount reductions rather than just efficiency improvements. Citi’s approach—cutting 20,000 jobs while selectively hiring “top talent”—suggests a workforce bifurcation where AI eliminates routine roles while creating demand for specialized positions. This pattern will likely define the next phase of AI’s impact on white-collar work, particularly in financial services where processes are highly digitizable.
Why This Matters
This announcement represents a concrete example of AI-driven workforce displacement at one of America’s largest financial institutions, providing real-world evidence of how artificial intelligence is reshaping employment in the banking sector. Citi’s explicit connection between AI adoption and 20,000 job eliminations offers a transparent look at the trade-offs financial services companies are making as they modernize.
The story illustrates a broader trend across Wall Street and corporate America: AI is moving from experimental technology to a core driver of operational efficiency and cost reduction. When a major bank’s CFO directly attributes headcount reductions to “productivity and tools like AI,” it signals that automation is no longer a future concern but a present reality affecting workers today.
For the AI industry, Citi’s approach demonstrates how enterprises are integrating AI into fundamental business transformation strategies rather than treating it as a standalone initiative. The bank’s focus on using AI to “innovate, re-engineer, and simplify processes” shows the technology’s expanding role beyond narrow applications to comprehensive operational overhauls. This has significant implications for workers across industries, as similar AI-driven restructuring could become the standard playbook for large organizations seeking efficiency gains.