Citigroup Cuts 1,000 Jobs This Week as BlackRock Plans 'Hundreds' More — The 2026 Layoff Wave Hits Finance

If you work in banking or asset management, 2026 has already delivered its first warning: no sector is safe.

Citigroup is cutting approximately 1,000 jobs this week, part of a multi-year restructuring programme that will see 20,000 roles eliminated — roughly 10% of its workforce — by the end of the year. Meanwhile, BlackRock, the world's largest asset manager, confirmed it will cut around 250 employees, marking its third round of layoffs within 12 months, according to Bloomberg.

For job seekers, the timing could hardly be worse. The simultaneous shedding of workers in both technology and finance means professionals who once moved fluidly between sectors now face increased competition in an increasingly crowded job market.

Citigroup's $2.5 Billion Cost-Cutting Strategy

The layoffs at Citigroup are not a response to sudden market upheaval. Instead, they are part of a deliberate strategy launched by CEO Jane Fraser, who initiated a major reorganisation in September 2023, culminating in the announcement of a 20,000-job reduction by the end of 2026 in January 2024.

The aim: save up to $2.5 billion (£1.86 billion) annually through streamlining operations and reducing bureaucracy, as reported by Business Standard. At the end of 2024, the bank employed approximately 229,000 full-time staff. Under Fraser's leadership, Citigroup has already shed more than 11,000 roles and reduced management layers from thirteen to eight.

'We will continue to reduce our headcount in 2026,' Citigroup told Bloomberg. 'These changes reflect adjustments we are making to ensure our staffing levels, locations and expertise align with current business needs; efficiencies we have gained through technology; and progress against our transformation work.'

Fraser has been frank about her expectations. In a recent internal memo, reported by Bloomberg, she warned employees that 'we are not graded on effort' and called for an end to 'old, bad habits' that she believes have dulled the bank's competitive edge.

BlackRock: The Quiet Cull Continues

BlackRock's announcement that it will trim roughly 1% of its 24,600-strong workforce has attracted less attention but remains significant. The world's largest asset manager rarely publicly announces layoffs, yet this marks its third workforce reduction in 12 months, with each round cutting about 1% of staff, according to Business Standard.

The cuts primarily affect investment and sales teams as BlackRock pivots towards alternative investments, including private credit and infrastructure. The firm completed a $12 billion (£8.9 billion) acquisition of HPS Investment Partners in July 2025 and is now integrating new executives and preparing funds targeted at wealthy retail clients.

Implications for Workers Across Sectors

The simultaneous layoffs in banking and asset management come as the global technology sector eliminated some 244,851 jobs in 2025 alone, according to data from RationalFX cited by Slashdot. A survey by the World Economic Forum found that 41% of companies worldwide expect to reduce their workforces within five years due to artificial intelligence adoption, reported Yahoo Finance.

For displaced workers, this paints a difficult picture. Those leaving finance now find themselves competing against tens of thousands of former tech employees for roles in an increasingly AI-automated economy. Sectors like healthcare and renewable energy may offer growth opportunities but often require skills that do not transfer easily from trading floors or coding desks.

Mass layoff warnings in the United States have surged to their highest levels in a decade, with total job cuts in 2025 exceeding 1.1 million, according to Challenger, Gray & Christmas. Over 100 companies have already filed legally mandated WARN notices regarding planned layoffs in 2026.

For Citigroup staff, Fraser's message offers little reassurance, even as the bank posted strong financial results. On Wednesday, Citigroup released its fourth-quarter and full-year 2025 earnings, reporting adjusted earnings per share of $1.81 (£1.35), beating analyst estimates, although revenue of $19.9 billion (£14.8 billion) fell short of forecasts, according to CNBC.

Fraser declared the bank is 'now decidedly on the front foot' but reiterated that job cuts will persist. Employees across Wall Street are left to wonder whether they will be next.