Citigroup Revamps IT Division, Cuts Contractors and Hires 2,000 Employees

Citigroup, the American multinational investment and financial services corporation, is set to implement significant changes in its Information Technology (IT) division. The bank plans to reduce its reliance on contractors from 50% to 20% while simultaneously hiring 2,000 new employees. As a result, Citigroup’s total technology workforce will increase to 50,000, according to a report by Reuters.

The decision follows a $136 million fine imposed on Citigroup due to weaknesses in its data management systems. Additionally, a $22.9 million fraudulent transaction was uncovered, which was primarily linked to external contractors. In response, the bank aims to enhance its in-house expertise to address such issues.

Tim Ryan, Citigroup’s Chief Information Officer, stated that the restructuring is intended to improve security and efficiency. The bank also emphasized its commitment to taking strict action against unethical activities.

Citigroup plans to expand hiring in low-cost locations while scaling down its workforce in high-cost regions. Cities such as Chennai, Belfast, and Warsaw are likely to see an increase in hiring, whereas employment in New York and New Jersey may decline due to their higher operational costs.