Citigroup is preparing to cut about 1,000 jobs this week, the latest step in Chief Executive Jane Fraser’s multiyear effort to slim down the sprawling Wall Street bank, rein in costs and improve returns after years of underperformance, Bloomberg reports.

The job reductions are part of a broader restructuring plan announced in 2023 that aims to eliminate 20,000 positions by the end of 2026, according to people familiar with the matter who requested anonymity.

Citigroup employed roughly 227,000 people at the end of September, making the cuts relatively modest in %age terms but significant in scope for employees affected.

Streamlining has become a defining theme of Fraser’s tenure since she took the helm in 2021.

Long seen as a laggard among major U.S. lenders, Citigroup has struggled to match the profitability and efficiency of rivals such as JPMorgan Chase and Bank of America.

Fraser has responded with an aggressive overhaul of the bank’s operations, exiting businesses that failed to meet return targets and reorganizing management layers she has described as bloated and inefficient.

The bank said in a statement that the latest cuts reflect continued progress in that transformation.

“We will continue to reduce our headcount in 2026,” Citigroup said. “These changes reflect adjustments we’re making to ensure our staffing levels, locations and expertise align with current business needs; efficiencies we have gained through technology; and progress against our transformation work.”

The timing makes for a tense week inside the company. In addition to the layoffs, Citigroup is set to report full-year earnings on Wednesday and notify employees of their 2025 bonus awards, adding to the sense of uncertainty for staff across the firm.

Two years ago, Chief Financial Officer Mark Mason laid out the full scale of the restructuring, saying Citigroup’s total headcount would fall by roughly 60,000 employees by the end of 2026, to about 180,000 workers.

That figure includes around 40,000 employees who are expected to depart when Citigroup spins off its retail banking operations in Mexico through an initial public offering of Banamex.

Even with this week’s cuts, the bank will still need to shed several thousand more jobs over the next year to hit its targets, along with completing the long-anticipated Banamex listing.

Fraser’s strategy has begun to win over investors. Citigroup’s shares surged 66 % last year, the biggest gain among major U.S. banks, as Wall Street warmed to the bank’s simplified structure and improved execution.

In October, Fraser also cemented her standing internally by becoming the first Citigroup chief executive since 2007 to also serve as board chair, a rare consolidation of power at the firm.

Yet challenges remain. In November, Citigroup announced that Mason would step down by the end of this year as he explores opportunities to become a chief executive elsewhere, setting the stage for another high-profile leadership transition.

The stock suffered a setback this week, falling about 3.1 % on Monday after President Donald Trump called for a cap on credit-card interest rates — a potential blow for Citigroup, one of the nation’s largest card issuers.