Citigroup has begun job cuts and organizational adjustments as part of CEO Jane Fraser’s ongoing efforts to streamline the global bank.
While the exact number of job cuts was not specified, Fraser, who assumed the role in early 2021, ordered a restructuring of teams based on a new alignment she devised.
The move will lead to the elimination of positions deemed unnecessary.
The first round of layoffs primarily target senior-level employees.
The following rounds would hit thousands of lower-level positions, aiming for completion by the end of the first quarter.
Internal speculation suggests the changes may result in culling around 10 percent of positions, translating to potentially thousands of job losses.
Massive transformation plan
Citigroup, once the world’s largest financial supermarket, is transforming significantly under Fraser’s leadership.
After assuming the role in early 2021, she announced plans to stop international consumer businesses.
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Fraser has focused on core business banking, advising international companies, and maintaining a US retail operation and credit-card company.
Fraser’s restructuring includes realigning top management and eliminating an overlapping regional structure, duplicating leadership globally.
Citigroup’s headcount has risen under Fraser, reaching 240,000 in September from 201,000 in early 2021.
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But the bank now faces layoffs, including the closure of international consumer sales, such as in Indonesia over the weekend.
Fraser acknowledged the challenging nature of the changes in a memo to staff, emphasizing the necessity of the moves for the bank’s long-term goals.
She said the company was “moving at pace” to make the changes, and thanked the staff for their “commitment, hard work and resilience.”
The restructuring, with the likely reduction in hiring and the closure of consumer businesses, would significantly reduce Citigroup’s total headcount in the coming years.