CITIGROUP INC
For the period ended Jun 30, 2024. Filed Aug 2, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Aug 2, 2024
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Contents
9. RESTRUCTURING
- RESTRUCTURING
As previously disclosed, Citi is pursuing various initiatives to simplify the Company and further align its organizational structure with its business strategy. As part of its overall simplification initiatives, in the fourth quarter of 2023, Citi eliminated the previous Institutional Clients Group and Personal Banking and Wealth Management layers, exited certain institutional business lines, and consolidated its regional structure, creatingone international group, while centralizing client capabilities and streamlining its global staff functions. Citi recorded approximately $781 million of restructuring charges in the fourth quarter of 2023 related to the initial implementation of its organizational simplification initiatives.
Citi incurred additional net restructuring charges of approximately $225 million and approximately $36 million related to the continued implementation of its organizational simplification initiatives during the first quarter of 2024 and second quarter of 2024, respectively.
Citi has recorded net restructuring charges of approximately $1.042 billion program-to-date.
Restructuring charges are recorded as a separate line item within Operating expenses in the Company’s Consolidated Statement of Income. These charges were included within All Other—Corporate/Other.
The following costs associated with these initiatives are included in restructuring charges:
Personnel costs: severance costs associated with actual headcount reductions (as well as those that were probable and could be reasonably estimated)
Other: costs associated with contract terminations and other direct costs associated with the restructuring, including asset write-downs (non-cash write-downs of capitalized software, which are included in Premises and equipment related to exited businesses)
The following table is a rollforward of the liability related to the restructuring charges:
| In millions of dollars | Personnelcosts | Other | Total |
|---|---|---|---|
| Balance at December 31, 2022 | $— | $— | $— |
| 4Q23 restructuring charges | 687 | 94 | 781 |
| 4Q23 payments and utilization | — | (69) | (69) |
| Foreign exchange | — | — | — |
| Balance at December 31, 2023 | $687 | $25 | $712 |
| Restructuring charges | $237 | $54 | $291 |
| Change in estimate(1) | (66) | — | (66) |
| Net restructuring charges | $171 | $54 | $225 |
| Payments and utilization | $(127) | $(46) | $(173) |
| Foreign exchange | — | — | — |
| Balance at March 31, 2024 | $731 | $33 | $764 |
| Restructuring charges | $81 | $— | $81 |
| Change in estimate(1)(2) | (42) | (3) | (45) |
| Net restructuring charges | $39 | $(3) | $36 |
| Payments and utilization | $(497) | $(30) | $(527) |
| Foreign exchange | (1) | — | (1) |
| Balance at June 30, 2024 | $272 | $— | $272 |
(1) Revisions primarily relate to higher-than-anticipated redeployments of displaced employees to other positions within the Company, job function releveling and employee attrition.
(2) Revisions primarily relate to lower-than-anticipated costs associated with contract terminations.
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