Citigroup Inc. is undertaking significant adjustments to its operational and policy frameworks, announcing on Thursday a plan to reduce its technology workforce in China by approximately 3,500 employees as part of a broader global effort to streamline its tech operations.
Concurrently, the Wall Street bank has reversed a controversial policy that restricted its dealings with firearms sellers, a move that signals a recalibration of its stance on sensitive political issues, particularly under the influence of former President Donald Trump’s administration.
As part of a strategic initiative to simplify and consolidate its global technology infrastructure, aimed at enhancing risk and data management capabilities, Citigroup will reduce staff numbers at its China Citi Solution Centres located in Shanghai and Dalian.
This reduction, impacting around 3,500 roles, is expected to be completed by the beginning of the fourth quarter of this year, the bank confirmed in a statement.
Citigroup indicated that some of the affected roles would be transitioned to its technology centers in other locations, though specific numbers or destinations were not disclosed.
This latest announcement follows a Reuters report last month which first revealed that Citi was cutting approximately 200 information technology contractor positions in China.
These actions are consistent with Citi’s internal plans, unveiled in March, to dramatically lessen its reliance on IT contractors and instead hire thousands of permanent employees for its technology divisions.
This shift was reportedly prompted by regulatory penalties related to data governance and inadequate internal controls.
Policy pivot: Citigroup revokes firearms restrictions
In a notable policy reversal, Citigroup has rescinded a rule implemented in 2018 that curbed its business relationships with companies involved in the sale of firearms.
This change, effective Tuesday, was accompanied by an update to the bank’s code of conduct, which now explicitly states that it “does not discriminate on the basis of political affiliation”.
This move represents a significant shift on an issue that has long been a contentious lightning rod in American politics and culture.
The original firearms policy was introduced by New York-based Citi in 2018 following the tragic Parkland school shooting in Florida, which resulted in 17 fatalities and ranks as one of the worst such incidents in US history.
At the time, the bank stated that the policy was implemented because “as a society, we all know that something needs to change. And as a company, we feel we must do our part.”
Mike Corbat, who was Citi’s chief executive at the time, had also promoted the policy during the group’s 2018 annual shareholder meeting, asserting it was “intended to preserve the rights of responsible gun owners like myself, while relying on best sales practices to keep firearms out of the wrong hands”.
The policy required the bank’s clients and partners not to sell firearms to individuals under the age of 21 or to those who had not passed a background check, and also prohibited the sale of bump stocks or high-capacity magazines.
Navigating political pressures and ‘fair access’ concerns
Citigroup’s decision to dismantle its firearms policy comes amidst a changing political landscape, with former President Donald Trump having been a vocal critic of corporate policies that support social causes.
Trump has also stated that his administration would review gun policies implemented during his predecessor Joe Biden’s term that may infringe on Americans’ constitutional rights to possess weapons. Furthermore, Trump has claimed that some US banks had declined to provide services based on political affiliation.
In explaining its decision, Citi cited “concerns that are being raised regarding ‘fair access’ to banking services” and “regulatory developments, recent executive orders and federal legislation.”
The bank stated that the rules regarding firearms had been “intended to promote the adoption of best sales practices as prudent risk management” but acknowledged that they “didn’t address the manufacturing of firearms.”
In its updated stance, Citi also affirmed it would amend its policies to “clearly state that we do not discriminate on the basis of political affiliation in the same way we are clear that we do not discriminate on the basis of other traits such as race and religion,” adding that “this will codify what we’ve long practised.”
While reversing the specific restrictions, Citi expressed a continued hope for societal progress on gun violence: “Many retailers have been following these best practices, and we hope communities and lawmakers will continue to seek out ways to prevent the tragic consequences of gun violence,” the bank said.
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