Citigroup is shrinking: The banking giant said Friday it will lay off 20,000 workers, or 10% of its workforce, by 2026, reports the Wall Street Journal.

The news came as Citi posted a $1.8 billion loss in the fourth quarter, compared to a $2.5 billion profit a year ago, per the AP.

“The fourth quarter was very clearly disappointing,” CEO Jane Fraser told analysts. “We know that 2024 is critical.”

The loss was primarily due to “one-off charges,” notes Reuters, with some analysts saying the number sounds worse than it is.

“Citigroup’s earnings looked awful with a big loss of $1.8 billion, but the bank’s underlying business showed resilience,” says Octavio Marenzi, CEO at consultancy firm Opimas.

Citi has been streamlining operations since Fraser took over in 2021 with that mandate, per the Journal. The layoff numbers do not include about 40,000 workers in Mexico who are part of a business being spun off.

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