In developments in the financial sector, where major restructuring is underway at one of the world’s largest banking institutions. Citigroup has announced a significant downsizing of its tech workforce in China. The U.S. based banking giant confirmed Thursday it will cut approximately 3,500 jobs at its China Citi Solution Centers, located in Shanghai and Dalian. The reductions are expected to be finalized by the beginning of the fourth quarter this year.

The move is part of Citi’s broader global overhaul aimed at streamlining its technology operations and strengthening risk and data management systems in response to increased regulatory scrutiny in recent years. In a statement, Citi said that while thousands of roles will be eliminated in China, some responsibilities will shift to the bank’s other global tech hubs. However, no specific figures or alternative locations were disclosed.

This follows a previous report in May, when Reuters revealed that around 200 IT contractor roles in China had already been cut. The latest move now signals a much larger shift in strategy.

Back in March, Citigroup internally announced a sharp pivot aiming to reduce dependency on third-party IT contractors and instead hire thousands of in-house technology staff. That shift came after regulatory penalties tied to gaps in data governance and internal controls.

The changes mark a significant recalibration of Citi’s global tech footprint, with China no longer serving as the cornerstone of its technology infrastructure as it once did.

We will be tracking the impact of these changes on global banking operations and regional employment trends. For now, Citigroup says the transformation is designed to build a stronger, leaner foundation for long-term stability and compliance.

Reporting by Carl Montel.