Amid CEO Jane Fraser’s corporate overhaul plan,
Citigroup employees expect announcements about management changes and layoffs
on November 20.
Citigroup employees are expecting these developments
in the wake of next phase of the bank’s sweeping reorganization, according to
four people familiar with the situation.
However, more details in regard to layoff is yet to
come as Citigroup employs 2.40 lakh employees across world. As per the
Financial Times, the Citigroup declined to comment on its ongoing layoffs and
bank overhaul plans.
In October 2023, Citigroup started to work upon CEO
Jane Fraser’s corporate overhaul plan. Citigroup announced plans to cut
management layers from 13 to eight as part of its biggest overhaul in decades.
In the two top layers of leadership, Citi reduced 15
per cent of functional roles and eliminated 60 committees, it said in its third
quarter earnings presentation.
The third-largest US lender will also eliminate
co-heads of divisions and regional roles, cut 50 per cent of internal financial
management reporting and centralize decision making, it said in October.
Support staff in compliance and risk management, and
technology staff working on overlapping functions are at risk of being laid
off, Reuters reported in September.
Citigroup CEO Jane Fraser’s corporate overhaul plan
aims to simplifying the sprawling lender after getting rid of five layers of
management. The company has said that cuts would begin by the end of this month
and continue through the end of the first quarter.
The bank hasn’t put a number on the overall layoffs
from a revamp that will refocus the firm on five key businesses. Even before
the restructuring plan began, Citigroup had racked up about $650 million in
severance charges as part of cutting 7,000 positions in the first nine months
of this year.
Still, firmwide headcount has actually remained flat
for the past four quarters at 240,000 employees. The bank has added technology
staffers and other employees to help with its efforts to resolve a pair of
consent orders the firm received from regulators.
Reuters/Bloomberg
