Citi CEO Talks About AI Changes and Job Market Shifts
Jane Fraser, the CEO of Citi, which is the third-largest bank in the United States, recently shared insights on the impact of artificial intelligence (AI) on the banking industry. In a conversation with the South China Morning Post, Fraser acknowledged that as AI technology advances, there could be significant job losses, especially in tech roles.
In June 2025, Citigroup announced the layoff of around 3,500 employees in its technology department, particularly affecting workers in China. This decision is part of the bank’s broader strategy to streamline operations and cut costs. Under Fraser’s leadership, Citi has been undergoing major changes to boost profitability and regain investor confidence.
Fraser pointed out that while AI may lead to job cuts, it will also transform many existing roles. She reminded viewers of her early career days as an analyst—spending time on tasks like photocopying and faxing, which have since changed significantly. “Jobs will evolve and new opportunities will arise,” she noted. However, she also warned that these changes won’t happen smoothly for everyone. “There will be challenges, but we encourage our staff to embrace the tools that AI provides,” she said.
Fraser emphasized that there are “two races” happening with AI right now. The first is its application in business models, which she believes is crucial for driving revenue growth.
Recent Job Cuts at Citigroup
In the recent layoff announcement, Citi detailed plans to cut around 3,500 tech jobs, mainly within its information technology services division. These roles are involved in software development, testing, maintenance, and operational support across Citi’s global operations. Although some jobs may be relocated to other technology centers, specific numbers and locations haven’t been disclosed.
These layoffs particularly affect employees in Citi’s Solution Centers located in Shanghai and Dalian. This decision aligns with a larger plan initiated last year to reduce the overall workforce by 10%, which translates to approximately 20,000 jobs globally. The bank is also scaling back operations and offices in various countries, including the US, Indonesia, the Philippines, and Poland.
Despite these cuts, Marc Luet, president of Citi Japan North Asia and Australia, reassured stakeholders about Citi’s commitment to its business in China. He stated, “China continues to be a vital part of our global operations, and we aim to serve our corporate and institutional clients effectively.”
As the banking industry navigates these changes, the balance between technological advancement and job security remains a key focus for leaders like Jane Fraser.
