Citigroup Layoffs Ensue as Part of CEO’s Restructuring Plan

Citigroup, America’s third-largest bank, has initiated a substantial round of layoffs as part of a planned restructuring of its corporate setup. This marks a significant phase in CEO Jane Fraser’s ambitious business transformation plan.

Among the employees affected by this imminent shakeup, an array of positions will be hit, ranging from chiefs of staff and managing directors to some lower-level workers. Some may have the opportunity to apply for different roles within the organization, and Citigroup has assured that eligible employees will be offered severance pay, as shared by the company’s human resources chief last month.

It’s clear that these developments are consistent with the strategy Fraser outlined in a memo dated Sept. 13. She unveiled the reorganization of the giant into five new divisions, with their respective heads reporting directly to her. This restructuring led to a couple of top executives making their exits. Fraser mentioned at the time that the following stage of disruption was scheduled to be executed by the end of November, with the “final changes” set to be in place by March 2024.

Fraser, who took the reins in March 2021, is in the hot seat as she’s tasked with steering Citigroup out of the prolonged patch of poor stock performance and soaring expenses. She is currently at a critical juncture, facing tough questions from investors regarding the bank’s ability to achieve the performance targets set last year.

While the exact scale of the job cuts remains uncertain, internal discussions suggest a potential reduction of at least 10% of the workforce in several business units. This information surfaced during the development of the aptly codenamed “Project Bora Bora.”

Employees receiving the pink slips will start getting notified this Wednesday, with more to follow daily through the start of the next week.