Citigroup announced significant layoffs in its technology sector in China on June 5, 2025. The company laid off 3,500 tech staff, primarily affecting back-office operations in Shanghai and Dalian. The layoffs are part of a broader restructuring effort aimed at streamlining operations and reducing costs. The back offices in Shanghai and Dalian serve more than 20 countries, indicating the global impact of these cuts. The decision to reduce the workforce in these locations reflects a strategic shift in Citigroup's operational strategy. Citigroup's back-office operations in China have been crucial for supporting the bank's global services. These offices handle a variety of functions, including data processing, customer service, and IT support. The layoffs are expected to have a significant impact on the local economy and the employees affected. The company has not yet released details on the support or severance packages that will be provided to the laid-off employees. The layoffs come at a time when the financial sector is undergoing significant changes, driven by technological advancements and shifting market dynamics. Citigroup's move is part of a broader trend in the industry, where banks are increasingly automating processes and reducing reliance on manual labor. The impact of these layoffs on the company's operations and future strategies remains to be seen, but they underscore the ongoing transformation within the financial services industry.