Citigroup considers significant job cuts in its ongoing CEO-backed restructuring
07 Nov 2023
In an effort to streamline its operations and boost stock performance, Citigroup's top management, working under CEO Jane Fraser's reorganization initiative, has reportedly contemplated job cuts of at least 10% in key business segments.
Citigroup, or C.N., had previously indicated the possibility of workforce reductions as part of a comprehensive restructuring plan announced in September 2023. However, the exact scale of layoffs and cost-saving measures is expected to be determined within the current quarter.
The internal reorganization, referred to as "Project Bora Bora", aims to empower CEO Jane Fraser with greater control while simplifying the mammoth Wall Street institution and enhancing its stock performance.
Discussions surrounding these job cuts are still said to be in the early stages, and the actual number of layoffs may be subject to change. Citigroup is said to have enlisted the services of Boston Consulting Group to help with the implementation of this plan.
Jane Fraser's drive to eliminate regional managers, co-head positions, and roles with overlapping responsibilities is anticipated to lead to job cuts that exceed the initial 10% estimate.
In October 2023, Citigroup revealed its intention to cut its management layers from 13 to 8, resulting in a 15% reduction in functional roles within the top two layers of leadership and the elimination of 60 committees.
In its most recent quarterly supplement, Citigroup disclosed that its global headcount remained at 240,000 for the year.
In response to these developments, a spokesperson for Citigroup stated that they were committed to delivering the full potential of the bank and meeting their commitments to their stakeholders, as they had mentioned previously. However, the spokesperson did not confirm or deny whether the bank had enlisted the services of Boston Consulting Group. The spokesperson further acknowledged that the restructuring would entail challenging and significant decisions but emphasized that these measures are essential to aligning the bank's structure with its strategic goals, as previously outlined at the 2022 Investor Day.
Jane Fraser, who took the helm of Citigroup in 2021, has been striving to enhance profitability, streamline the bank's operations, and address regulatory issues. Despite her efforts, Citigroup's stock performance has still lagged behind that of its industry peers.
