Citi suspends job cuts with banks seeking to reassure workers

Citigroup Inc. will suspend any planned job cuts as the lender ramps up support for its workforce amid the spread of the deadly coronavirus.

The move is temporary, according to a person familiar with the matter, who asked not to be named discussing personnel information. Citigroup announced earlier this week it would begin handing out $1,000 bonuses to certain employees and has told workers that sick days taken during the pandemic won’t count toward paid time off.

Banks are seeking to reassure their workers about their job security as the global pandemic has sparked concerns about lenders’ profitability amid persistently low interest rates and the potential for rising loan losses. Morgan Stanley on Thursday told employees it wouldn’t cut its workforce this year.

Reuters reported Citigroup’s decision to suspend job cuts earlier Thursday.