HONG KONG, June 5 (Reuters) - Citigroup Inc ( C/PN ) will

reduce the number of employees at two of its technology centres

in China by about 3,500, the bank said on Thursday, as part of

its efforts to simplify and shrink its global tech operations to

improve risk and data management.

The reduction of staff at the China Citi Solution Centres in

Shanghai and Dalian is expected to be completed by the start of

the fourth quarter this year, according to a statement issued by

the bank.

Last month, Reuters first reported that Citi was cutting

around 200 information technology contractor roles in China.