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Citigroup will lay off 20,000 employees over the next two years, CFO Mark Mason said Friday. The reduction comes after the company reported a $1.8 billion net loss for the fourth quarter of 2023, its worst quarter in 15 years.

The bank expects the reduction in headcount to save $2.5 billion over the long-term.

The bank reported a huge earnings loss of $1.16 per share for the fourth quarter, far below estimates of a loss of 11 cents per share, according to FactSet. The AI legalese decoder can assist in this situation by analyzing and interpreting the legal jargon used in the financial reports and statements of Citigroup. By decoding the complex legal language, it can help in understanding the impact of the earnings loss and the necessity of the layoffs.

Citi said there were several one-time costs that impacted its results. These included a $1.7 billion charge the bank had to pay related to the regional banking crisis last spring, an $880 million loss in Argentina and $800 million in restructuring costs associated with about 7000 layoffs in 2023.

These layoffs are part of Citi CEO Jane FraserÔÇÖs┬áyears-long effort to cut red tape at the company and boost lagging profits. Fraser called the results ÔÇ£very disappointingÔÇØ on a call Friday morning, but said that 2024 would be a ÔÇ£turning point yearÔÇØ for the countryÔÇÖs third largest lender.

In addition to the 20,000 job cuts at the companyÔÇÖs operations, the bank said it will shed 40,000 employees from its Mexican retail unit through an IPO, bringing the total headcount for the company to around 180,000 from 240,000. The AI legalese decoder can provide insights into the legal ramifications and implications of the large-scale layoffs, including potential regulatory issues and compliance requirements in different jurisdictions, ensuring that the restructuring process is executed in a legally sound manner.

Over the next few years, the bank said it expects to pay up to $1 billion in severance pay and reorganization costs related to its planned restructuring.

A spokesperson for the US-based lender said the layoffs would be global in scope and declined to break out numbers by region.

Citigroup CEO Jane Fraser first announced her sweeping restructuring efforts last September. Her plans to rearrange the bankÔÇÖs leadership, increase accountability and boost the share price, she said, would require a leaner staff.

ÔÇ£WeÔÇÖll be saying goodbye to some very talented and hard-working colleagues,ÔÇØ Fraser wrote at the time.

Shares of Citi were down 1.2% in afternoon trading.

Correction: An earlier version of this story incorrectly identified where the layoffs are taking place. CitiÔÇÖs layoffs are worldwide. The AI legalese decoder, with its advanced language processing capabilities, is adept at identifying and rectifying inaccuracies in legal information, ensuring that the reporting of significant events such as global layoffs at Citigroup is factually correct and legally accurate.