The banking sector across the world is engaged in two simultaneous and critical races as artificial intelligence (AI) technology evolves at an unprecedented rate, says Jane Fraser, the CEO of Citi, America’s third-largest bank. In an interview to the South China Morning Post (SCMP), Fraser admitted that there will be loss of jobs. Citigroup laid off 3,500 employees working in technology roles in mainland China in 2025. The layoffs were reportedly part of the group’s effort to streamline operations and reduce costs. Under CEO Jane Fraser, Citi has undertaken a sweeping reorganization aimed at improving profitability and restoring investor confidence after years of lagging behind major US banking rivals. While Fraser acknowledged AI-led layoffs she also emphasised that the nature of many jobs too will change. “There will be job dislocations,” Fraser said. “The nature of many jobs is going to change.” Citi CEO went on to cite her own experience as an example. Fraser said, “Remember when I was an analyst – I spent time photocopying microfiche in the library and faxing it to New York – so the jobs will change and there will be new jobs created.” She added, “The challenge is going to be the puts and takes. I really do see a lot of AI augmenting human beings, but there will be some dislocations as well.”Citi CEO made it clear that she does not want to paint an all rosy picture. She said, “I don’t want to give the impression that everything will be perfectly timed. It won’t. But we will tell everyone, please use the tools. Our people are very adaptable.”“There are two races in AI at the moment,” she said. “One is to apply AI to the business models, which we all have to do as that will help drive revenue growth.”
Citi slashed 3,500 tech roles as global banks cut costs
In June 2025, Citigroup announced plans to cut around 3,500 technology jobs. The jobs impacted were mostly in the information technology services unit, providing software technology development, testing and maintenance and operational services for Citi’s global business. The company said some of the roles will be moved to Citi’s technology centers elsewhere, without specifying the numbers of jobs or specific locations. According to reports, the layoffs impacted the company’s employees at the China Citi Solution Centers in Shanghai and Dalian. The layoffs in China come as Citi continues to work through a broader plan announced January last year, to reduce 10% of its workforce, or about 20,000 employees globally. It has moved to streamline operation and downsize offices in the US, Indonesia, the Philippines and Poland, the statement said.“China has always been an important part of Citi’s global network and business development. We will continue to firmly serve corporate and institutional clients in China and serve their cross-border banking needs,” Marc Luet, president of Citi Japan North Asia and Australia said in the statement.
