Citi to cut up to 200 tech contractor roles in China, sources say
Live Events
(You can now subscribe to our
(You can now subscribe to our Economic Times WhatsApp channel
Citigroup is cutting up to 200 information technology (IT) contractor roles in China, two people familiar with the matter said, as the bank looks to hire its own staff globally for such operations to improve risk management and data governance.Last July, U.S. bank regulators fined Citi $136 million for making "insufficient progress" fixing data management issues and the IT revamp underscores Citi's efforts to meet regulatory demands.Around 100 IT staff in China were informed this week that their contracts will not be renewed, and another 100 are likely to receive their termination notices soon, said the people, who declined to be named due to sensitivity of the matter. The job cuts have not been reported previously.The staff are employed by Citigroup Services and Technology China, a wholly-owned China unit Citi established in 2002, which has around 3,000 employees in total, according to the sources.It was not immediately clear how many of those employees are contractors.The unit supports the bank's global businesses - including investment and consumer banking - in 20 countries and regions including New York, London and Hong Kong, its website shows.Citi's head of technology Tim Ryan told staff earlier this year that the bank aimed to reduce the share of external contractors in IT to 20% from the current 50%, according to an internal presentation to employees seen by Reuters.At the same time, the Wall Street bank planned to hire more staff, aiming to raise technology headcount to 50,000 from 48,000 in 2024, the presentation showed.In China, Citi is offering most of the affected contractors a severance package based on their years of service, the sources said."As part of the regular business operations of Citigroup Services and Technology (China) Limited (CSTC), we review our HR strategy on an ongoing basis, including decisions about renewing (fixed term) employment contracts," said Citi in a statement."When decisions are made on non-renewal of fixed term contracts, this will be done in compliance with applicable laws, regulations and procedures. We are committed to supporting impacted employees."Besides its IT operations, Citi has banking business in China and is in the process of setting up a securities unit there.The cutting of IT contractor jobs in China has no impact on Citi's business strategy and commitment to both local and global clients in that market, said a spokesperson for the bank in Hong Kong.Other global financial firms have also taken steps to reduce their dependence on China as an IT and service outsourcing destination, as costs rise, and geopolitical uncertainties and new regulations weigh.Reuters reported in October 2024 that asset manager Fidelity International cut around 500 jobs at one of its technology and operations centres in northeastern Chinese city of Dalian.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Mint
an hour ago
- Mint
Hong Kong Stock Rally Shakes Up Investor Playbook for China
Wall Street entered 2025 with bullish bets on onshore Chinese stocks, counting on Beijing's stimulus drive to cushion the blow from US tariffs. Six months in, they couldn't have been more wrong. Blame it on the breakthrough by DeepSeek in artificial intelligence that suddenly turned the tide in favor of Chinese shares listed in Hong Kong. With persistent economic woes battering the onshore market, the Hang Seng China Enterprises Index has beaten the CSI 300 Index by nearly 20 percentage points so far in 2025, heading for the biggest annual outperformance in two decades. Strategists at Julius Baer Group Ltd. and Morgan Stanley are among those expecting the Hong Kong market's lead to continue. A slew of new hot listings, including bubble tea maker Mixue Group and battery giant Contemporary Amperex Technology Co. Ltd., has reignited global interest toward the financial hub and expanded investment options. Mainland investors have poured nearly $90 billion into Hong Kong stocks this year, already nearing 90% of the whole amount for 2024. The sector structure in Hong Kong 'is also becoming more comprehensive with recent listings and upcoming IPOs,' said Richard Tang, China strategist at Julius Baer. 'H-shares are likely to continue outperforming A-shares driven by global rebalancing flows and strong Southbound flows,' he added, referring to Hong Kong and mainland-listed stocks, respectively. As the Hang Seng China gauge has gained 17% this year, the CSI 300 Index has shed more than 2%. Analysts attribute the weakness to the onshore market's composition — heavy on property, financial and traditional consumption stocks — which are more reliant on domestic demand. Tech heavyweights including Alibaba Group Holding Ltd. and Tencent Holdings Ltd. are listed in Hong Kong. Despite China's unexpectedly strong retail sales in May, deflationary forces and a housing slump persist. Even as trade tensions continue to simmer, the big bang stimulus from Beijing that some investors had hoped for has yet to materialize. A key source of support for the A-share market has also subsided. After actively propping up stocks early April as tariff shocks hit, state funds have been notably absent, according to Bloomberg's analysis of exchange-traded funds purchased by Central Huijin Investment. Meanwhile, things have been coming together for Hong Kong. HSBC Holdings Plc expects mainlanders' purchases via the southbound stock connect to reach $180 billion this year, an unprecedented amount. Read: What's Behind China's Listing Frenzy in Hong Kong?: QuickTake A reassessment of China's tech potential has driven a re-rating of stocks in Hong Kong. The Hang Seng China gauge now trades at 9.3 times its forward earnings estimates, above a five-year average of 8.5 and sharply higher than the 2024 low near a ratio of six. 'More single-stock opportunities related to AI and new consumption, particularly the larger caps, are listed in Hong Kong,' Morgan Stanley strategist Laura Wang wrote in a note earlier this month. 'Some of the long-term well-liked A-share companies are choosing to come to Hong Kong for dual-listing.' The steep underperformance of A-shares, however, means there may be room for catch-up. The premium that onshore stocks have long commanded over Hong Kong peers has narrowed to about 30%, below a five-year average of around 42%. Fiscal stimulus could revive interest in beaten-down sectors onshore, such as consumer staples. There's also an array of hardware tech firms that should benefit from Beijing's push for self sufficiency. 'A-shares still have investment appeal,' said Agnes Ng, portfolio specialist at T. Rowe Price Group Inc. 'If China's economic growth slows in the second half and stimulus is deployed, A-shares would benefit directly.' Yet the limited pool of attractive megacap stocks onshore means the recovery will once again hinge on if and when Beijing will deploy greater stimulus. That lingering uncertainty will likely keep investors favoring Hong Kong for the time being. 'H-shares are typically higher beta due to the index make-up — and in an up year are likely to outperform,' said Robert Mumford, investment advisor at GAM Investments. 'The end-goal of a range of policy stimulus is to increase consumption, which is the core underlying business of the internet platform companies. Hence we are more positive on H shares versus A.' This article was generated from an automated news agency feed without modifications to text.
News18
2 hours ago
- News18
Did ICICI Bank Try To Acquire HDFC? What Deepak Parekh Reveals
Last Updated: 'I remember you talking to me said ICICI started HDFC. 'Why don't you come back home?' That was your offer,' Parekh said in interaction with Ex-ICICI CEO Chanda Kochhar. ICICI Bank once tried to merge housing finance firm HDFC with itself before its reverse merger with its own banking arm, HDFC Bank former chairman Deepak Parekh has revealed. In a YouTube video, Parekh, in an interaction with ICICI Bank former MD & CEO Chanda Kochhar, said, 'I remember you talking to me once…you said that ICICI started HDFC. 'Why don't you come back home?' That was your offer." However, Parekh said he declined the offer, saying 'it won't be fair or proper with our name and the bank and all". He also said the HDFC Bank-HDFC reverse merger, which was completed in July 2023, was primarily driven by regulatory pressure. 'The RBI supported us and they pushed us into it to some extent and they helped us…there were no concessions, no relief, no time, nothing but they helped us to go through the process and get the approval," Parekh said. On the reverse merger, Parekh called it 'a sad day and a happy day". He added, 'It's good for the institution. It's good for the country to have large banks. Look at how large Chinese banks are. We have to be bigger, larger in India." Describing the merger as good for the institution, he said, it is good for the country to have large banks. Indian banks must grow through acquisitions to become stronger in future, he added. HDFC Ltd, the parent entity of HDFC Bank, merged with its banking subsidiary to create the country's biggest private sector lender. The merger became effective from July 1, 2023. With the reverse merger, the 44-year-old institution HDFC Ltd faded into memory lane. Interestingly, the creation of HDFC Ltd was financially supported by erstwhile ICICI Ltd, the parent entity of ICICI Bank. The Reserve Bank of India had classified large NBFCs like HDFC, which then held assets exceeding Rs 5 lakh crore, as systemically important — well above the Rs 50,000-crore threshold. (With Inputs from PTI) First Published:
Hans India
2 hours ago
- Hans India
BRICS summit to focus on local currency trade
Weeks before top BRICS leaders converge in Rio de Janeiro for summit talks, envoys of leading member nations of the grouping hinted that it could focus on greater use of national currencies for trade in the face of uncertainties over Trump administration's aggressive policy on tariff. Russian Ambassador Denis Alipov reaffirmed Moscow's strong support for trade in local currency among BRICS member nations and described the grouping as 'a serious platform for discussing joint soluti'ons to big challenges'. The summit is unlikely to make any significant progress on the proposed BRICS currency as it will need significant structural changes and reforms. In the last few months, President Donald Trump has cautioned BRICS member nations against rolling out a BRICS currency to replace the US dollar. 'BRICS is not a counter-bloc. It is a centre of gravity for countries seeking mutual respect and non-interference,' Alipov said at a conference titled 'BRICS in Rio: Shaping an Inclusive and Sustainable World Order' that was co-organised by the Embassy of Brazil in India and Centre for Global India Insights (CGII), a leading think tank focused on global affairs. The 17th BRICS ((Brazil, Russia, India, China, and South Africa) summit will be held in Rio de Janeiro on July 6 and 7. Brazil is hosting the summit in its capacity as the chair of the influential bloc. Prime Minister Narendra Modi, Chinese President Xi Jinping, South African President Cyril Ramaphosa and several other leaders of the member nations of the grouping are expected to attend the summit. Enhancing the use of national currencies in settling intra-BRICS trade figured prominently in discussions, with all panellists backing the proposal, which is already being implemented by BRICS countries. However, the panellists found the idea of a BRICS common currency impractical. Besides Alipov, India's BRICS sherpa and Secretary (Economic Relations) in the Ministry of External Affairs (MEA) Dammu Ravi, Brazil's Ambassador to India Kenneth Felix Haczynski da Nobrega, Indonesia Ambassador Ina Hagniningtyas Krisnamurthi and Egypt's envoy Kamel Zayed Kamel Galal attended the conference. In his remarks, Ravi clarified that discussions around a BRICS common currency are still at a very early stage. 'Today, for now, we are only looking at trade settlement in national currencies. Harmonisation of fiscal and monetary policies is very, very difficult to achieve, he said. Nobrega and Ravi both reiterated that a common currency would require far deeper policy harmonisation -- something the EU struggled with despite far more economic alignment.
