Sources indicate that Citi is undertaking a restructuring of its technology teams in Shanghai and Dalian, China, with approximately 3,500 positions slated to be eliminated. This move is part of a larger, global initiative to streamline Citi’s technology and business support operations.
According to reports, Citi communicated details of its severance packages to affected employees during meetings held on June 5th. The bank is planning to execute separation agreements in phases, with compensation reportedly exceeding statutory requirements.
It’s common practice for multinational corporations operating in China to offer severance packages that are more generous than the legally mandated minimums. For example, in 2025, Microsoft Shanghai offered packages of N+8 during a round of layoffs, while Mercedes-Benz China offered up to N+11. The Chinese Labor Contract Law stipulates a minimum compensation of N or N+1 (in cases where advance notice was not provided).
While the proposed compensation structure at Citi may fall below some of the more generous precedents set by companies like Microsoft, it still represents a significant premium over the typical severance levels often found within Chinese businesses.
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