Citigroup The company plans to cut about 3,500 technical positions in China to facilitate the latest moves of major U.S. banks to simplify global operations and reduce costs, it said Thursday.

Citi said in a statement that staff at the China Citi Solutions Center in Shanghai and Dalian are expected to be completed before the start of the fourth quarter of this year.

The affected work is mainly in the Information Technology Services department, providing software technology development, testing and maintenance and operation services to Citi's global business.

The company said some of these roles will be moved to Cititech Centers elsewhere without specifying the number of jobs or the number of specific locations.

With the broader plan announced last January, China's layoffs are layoffs in China to reduce its workforce by 10%, or about 20,000 employees worldwide. It has been translated into a simplified office size in the United States, Indonesia, the Philippines and Poland, the statement said.

Led by CEO Jane Fraser, Citi undertook a detailed restructuring aimed at increasing profitability and restoring investor confidence, after lagging behind its U.S. big bank counterparts for many years.

As US President Donald Trump's tariff policy has raised concerns about a decline in trade activity, a series of major global banks have new pressure to reduce costs amid the global economic outlook.

Hong Kong-based Hang Seng Bank, a subsidiary of HSBC, said last month that it was restructuring its business and simplifying its duplicate role, a move that would result in job losses of about 1% of “core employees”.

The cuts are part of a cost-cutting drive led by HSBC CEO Georges Elhedery, which aims to cut expenses by $1.8 billion by the end of 2026.

Hong Kong and mainland China-centered lenders reported rising non-performing loans over the past few years due to their relatively high exposure to China’s troubled real estate sector.

Several Wall Street banks, including JPMorgan and Bank of America, have begun the annual process of ending underperforming employees.

Bank of America has reportedly canceled 150 banking positions in its investment banking units after rivals JPMorgan Chase and Goldman Sachs conducted similar exercises.