Citigroup has closed its beachside office in Málaga, Spain, as part of a broader push to simplify operations and improve efficiency. The move signals a shift in leverage from junior talent back to employers, potentially forcing young bankers to focus on job security over work-life balance. Citi’s initial effort to offer a softer schedule and flexible working arrangements was met with skepticism, but the firm’s CEO Jane Fraser has reportedly prioritized remote work as a competitive advantage.
The decision comes as global investment banking revenue has fallen 6% year-over-year to $26.2 billion, according to preliminary data from Dealogic. Citi’s own fees collected have jumped to $1.36 billion, despite the challenges facing the industry. Industry working conditions have been underlined by recent tragedies, including a former Green Beret who died of a blood clot following 100-hour-plus weeks at Bank of America.
Citi initially hired 27 junior bankers in 2022 for its Málaga program, offering less pay but a softer schedule than peers in major hubs. However, the program’s closure signals how economic headwinds and industry efficiency are shifting focus away from work-life balance and toward job security. As CEO Jane Fraser has prioritized remote work as a competitive advantage, Citi is pushing for greater employee flexibility – even if it means sacrificing some benefits.
The trend could continue if the economy weakens and borrowing costs remain slow to come down. Industry experts say it’s an ongoing tug-of-war between employers seeking efficiency and employees demanding better working conditions.
Source: https://fortune.com/article/investment-bankers-work-from-beach-dreams-crushed-citi-shutters-malaga-office