Layoff guide · Citi · 2026
Citi’s 2026 WARN notices cover more than 1,100 positions in New York and New Jersey. If you’re one of them, a few clocks start on your last day, and some choices can’t be undone. Estimate your packet, then take it in this order.
Updated November 4, 2026 · Gregory Garone, CEPA®
Step 1
Four numbers give you the severance, the tax it will likely leave unpaid, and your deadlines.
16 weeks × $2,885 a week
Add your last day to see your personal deadlines.
Two weeks of base pay per full year of service, up to 52 weeks, as Citi’s plan has been described publicly. Your separation letter states your actual amount. The tax estimate uses 2026 federal brackets and the standard deduction, and assumes nine months of salary this year. Nothing you enter is saved or sent.
Step 2
Hypothetical. A director, 56, single, with 12 full years at Citi, earning $250,000 base. Last day: September 30, 2026.
| Severance: 24 weeks of base pay | $115,385 |
|---|---|
| Federal tax withheld at 22% | −$25,385 |
| Federal tax actually owed on it, at a 35% top bracket$187,500 of salary through September plus $60,000 of deferred stock that vested in February is already in the year | −$39,640 |
| Shortfall to set aside before April | $14,255 |
| Deferred stock still vesting after the last day | $60,000 a year for 2 years |
Ask HR the checklist questions below and send the release to an employment attorney. At 56 in a group layoff, there are 45 days to decide and 7 to revoke.
Set aside about $14,000 for federal tax the 22% withholding won’t cover, plus New York State and City tax.
Choose COBRA or a Marketplace plan, if coverage ends September 30.
Price net unrealized appreciation on the $90,000 of Citi shares. Rolled into an IRA, the $60,000 gain would later be taxed as ordinary income.
If work starts mid-year, 2027 income could be mostly the $60,000 vest. That’s a window to convert some 401(k) money to Roth at 22–24% instead of 35%.
Leave the 401(k) in the plan for now: at 56, it can be withdrawn without the 10% penalty. Compare the pension’s lump sum with its annuity before choosing.
Step 3
Handle what can’t be undone first. The retirement accounts can wait, as long as you don’t cash them out.
If you’re 40 or older and part of a group layoff, federal law generally gives you at least 45 days to consider a release and 7 days to revoke it after signing, plus a list of the ages and job titles of who was and wasn’t selected.
You generally have 60 days to elect COBRA, and coverage reaches back to the day it ended. Losing job-based coverage also opens a 60-day window to buy a Marketplace plan.
Severance is taxed as wages and often withheld at a flat 22%. If your bracket is higher, set aside the difference or make an estimated payment.
If the plan offsets an unpaid loan when you leave, rolling that amount into an IRA by your tax-return due date, including extensions, avoids the tax.
Each vest is taxable income in the year it vests, even though you no longer work there.
Step 4
Your decision: Whether to sign, and when. In New Jersey, state law separately requires at least 1 week of pay per year of service in a covered mass layoff.
SourceYour decision: Nothing to elect for most people. Plan for the tax on each vest and decide how much Citi stock to keep.
SourceYour decision: Leave it, take a lump sum and roll it to an IRA, or take an annuity. A spouse generally must consent to anything but a joint and survivor annuity.
SourceYour decision: Keep it in the plan, roll it to an IRA, or both. If you’re 55 or older in the year you leave, the plan lets you withdraw without the 10% penalty.
SourceStep 5
Severance is usually paid in exchange for giving up legal claims.
The review period is yours to use. Signing early doesn’t pay you more.
For many senior employees, it’s worth more than the severance.
Severance plus vesting can make this your highest-income year, and next year one of your lowest.
Two separate decisions, neither due on your last day.
Rolling Citi shares into an IRA permanently gives up the net unrealized appreciation tax break.
A gap between jobs can be the cheapest time to pay tax on purpose.
Step 6
Print it, bring it, and get the answers in writing.
Questions for Citi HR before you sign
From wealthplannerpro.ai · Educational information, not legal or tax advice.
| State | Positions | Entity and site | Posted | Separations |
|---|---|---|---|---|
| New York | 881 on the amended notice | Citibank, N.A. (820), Citigroup Global Markets Inc. (58), Citigroup Technology, Inc. (3)388 Greenwich Street, New York, NY | First posted March 10, 2026 with 265 positions; amended version posted August 6, 2026 | Beginning April 14, 2026New York State Department of Labor WARN dashboard |
| New Jersey | 141 | CitibankStatewide | February 2026 | May 21 through June 14, 2026New Jersey Department of Labor, 2026 WARN list |
| New Jersey | 68 | Citibank, N.A.Hudson and Bergen counties | June 2026 | June 28, 2026New Jersey Department of Labor, 2026 WARN list |
| New Jersey | 59 | Citibank, N.A.Hudson County | August 2026 | October 31, 2026New Jersey Department of Labor, 2026 WARN list |
A WARN notice states what was planned; employers amend notices and final numbers can differ. The New York count is the latest version of the notice, not the earlier versions added together. Checked November 4, 2026.
Citi’s amended New York WARN notice, posted August 6, 2026, covers 881 positions at 388 Greenwich Street: 820 at Citibank, N.A., 58 at Citigroup Global Markets and 3 at Citigroup Technology. Three New Jersey notices cover another 268.
Citi’s separation pay plan has been described as two weeks of base pay per full year of service, up to 52 weeks, usually in exchange for signing a release. Your separation letter states the actual amount.
Generally not. Citi’s filings say deferred awards keep vesting on schedule after an involuntary termination other than for gross misconduct, subject to performance conditions and clawbacks. Your award agreement controls.
As wages. It’s commonly withheld at a flat 22% for federal tax, which can be well below your actual bracket in a year with a full salary and stock vesting. The estimator on this page shows the likely gap.
It depends on your other income, health, spouse and how you’d invest it. Compare the lump sum with the cost of buying the same income from an insurer before choosing; the choice is usually permanent.
No. You can leave it in the plan, roll it to an IRA, or split it. Don’t cash it out: that’s taxable, and a 10% additional tax may apply before age 59½.
Your agreement states the deadline. If you’re 40 or older and part of a group layoff, federal law generally requires at least 45 days to consider it and 7 days to revoke after signing.
WealthPlannerPro and Morrowgate Private Wealth are not affiliated with Citigroup Inc. or Citibank, N.A. This guide uses public filings; your own plan documents and separation agreement control.
Educational information, not personalized tax, legal or investment advice. Plan terms change, and your plan documents, award agreements and separation agreement control. An employment attorney should review a release before you sign it.
Tell Greg what’s in your separation packet: the severance, the deadline, your awards, the pension and the 401(k). He’ll tell you what needs attention first and whether a fuller review would help.
Submitting a question does not begin an advisory relationship.