Citi’s wholly-owned local banking unit Citibank (China) Co. will be unaffected, Bloomberg reported, citing the lender.

Citigroup (C) is reportedly planning to slash around 3,500 technology jobs in China amid its ongoing efforts to cut costs.

According to a CNBC report, Citi has reportedly announced that staff reductions will occur at its China Citi Solution Centers in Shanghai and Dalian, with the lender intending to complete the layoffs by the start of the fourth quarter.

According to the report, the affected jobs are primarily located in the Information Technology Services unit, which provides software development, testing, and maintenance, as well as operational services for Citi’s global business.

Citi’s wholly-owned local banking unit Citibank (China) Co. will be unaffected, Bloomberg reported, citing the lender. The report said that the bank will continue to invest in the local unit to support corporate and institutional clients in Asia’s largest economy.

The move comes amid CEO Jane Fraser’s attempts to close the gap in valuation between the bank and its U.S. peers. 

The lender announced in January 2024 that it intends to lay off 10% of its workforce, equivalent to approximately 20,000 jobs, over a two-year period in an effort to streamline operations.

Major Wall Street banks are wary of a worsening economic outlook as the threat of a global trade war continues to linger.

According to the CNBC report, Citi reportedly stated that some of the roles will be relocated to its technology centers elsewhere, without specifying the number of jobs or specific locations.

Retail sentiment on Stocktwits was in the ‘bullish’ (59/100) territory, while retail chatter remained ‘normal.’

Citi had already exited the consumer banking business in China in 2022.

Citi stock has risen 7.7% this year.

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