**Citigroup to Slash 3,500 Technology Jobs in China by Q4**

Citigroup has announced plans to cut approximately 3,500 technology positions in China before the fourth quarter commences. This decision marks the latest effort by the U.S. banking giant to streamline global operations and curb expenses.

According to a statement from Citi, the layoffs will primarily affect the information technology services unit at the China Citi Solution Centers located in Shanghai and Dalian. These units are crucial for providing software development, testing, maintenance, and operational services for Citi's global business. Some of the roles impacted by the layoffs will be relocated to Citi's other technology centers, though specific numbers and locations were not disclosed.

The move is part of a broader initiative launched by Citigroup in January last year to reduce its workforce by 10%, equating to around 20,000 employees globally. The company has already taken steps to downsize and streamline operations in locations including the U.S., Indonesia, the Philippines, and Poland.

Marc Luet, president of Citi Japan North Asia and Australia, emphasized China's significance to Citi's global network, reaffirming the bank's commitment to serving corporate and institutional clients in the region. The reorganization efforts are part of a larger strategy led by CEO Jane Fraser to bolster profitability and regain investor confidence.

The restructuring trend is pervasive among global banks, driven by the broader economic challenges and U.S. President Donald Trump's tariff policies. This economic backdrop has heightened concerns about trade activity and the need to cut costs. Other banks, such as HSBC's subsidiary Hang Seng Bank, are also making similar moves, with Hang Seng Bank recently announcing job cuts impacting about 1% of its core staff as part of a $1.8 billion cost-cutting drive.

The financial services sector in China is experiencing additional pressures from the country's soft economic growth and increased regulatory oversight. Despite these challenges, Luet confirmed that Citigroup still plans to establish wholly-owned securities and futures companies in China.

The banking industry's restructuring wave extends beyond Citigroup, with notable entities like JPMorgan, Bank of America, and several European companies also reducing staff in response to the economic climate and trade tensions. For instance, Bank of America has already cut 150 banking positions in its investment division this year.

The impacts of geopolitical tensions and sluggish domestic demand are prompting multinational businesses to reconsider their reliance on the Chinese market. Among them, L'Oréal and Mercedes-Benz have made headlines for substantial layoffs and restructuring plans, with Mercedes-Benz aiming to cut 15% of its sales and finance staff in China while still planning future investments in the local electric-vehicle market.

The evolving landscape suggests that Western entities in the financial and corporate sectors are facing unprecedented pressures as they navigate the complexities of operating in China amidst economic and regulatory challenges.