Citi is to lay off 3500 tech staff in China as part of a major revamp of the bank's global operations.
The jobs affected are mostly in the information technology services unit, providing software technology development, testing and maintenance and operational services for Citi’s global business.
Citi say some of the roles will be relocated to the US and other sites, but declined to provide specific details.
“China has always been an important part of Citi’s global network and business development. We will continue to firmly serve corporate and institutional clients in China and serve their cross-border banking needs,” Marc Luet, president of Citi Japan North Asia and Australia said in a statement.
The switch comes amid heightened tensions between China and the US, as Donald Trump's tariffs mania leads to a further deteriortation in relations between the two global superpowers.
Citi in May hired former US trade representative Robert Lighthizer to advise on tariff implications. Lighthizer served during Trump’s first term, imposing tariffs on China and renegotiating the North American Free Trade Agreement (NAFTA) with Mexico and Canada.
A business survey from the American Chamber of Commerce in China showed the share of US companies in China considering to relocate manufacturing or sourcing out of China hit a record high, at the outset of Trump’s second term.