Citigroup Set to Announce Management Changes and Layoffs on Monday
By April Fowell
According to four sources familiar with the issue, Citigroup workers may anticipate announcements regarding management changes and layoffs on Monday as part of the bank's extensive restructuring.
Employees at the bank, which employs 240,000 people globally, are waiting for further information about the extent of layoffs.
Citi stated last month that it will reduce its management layers from thirteen to eight as part of its largest change in decades. Citi stated in its third-quarter results presentation that it has removed 60 committees and cut 15% of functional responsibilities in the top two tiers of leadership.
In addition, the third-largest U.S. lender said in October that it would consolidate decision-making, eliminate co-heads of divisions and regional responsibilities, and reduce internal financial management reporting by 50%.
Employees who work on overlapping tasks in technology and compliance and risk management support may lose their jobs.
People with knowledge of the issue said that starting on Wednesday, impacted employees would receive notifications about the layoffs, and additional dismissals will be revealed every day until early next week.
Chiefs of staff, managing directors, and a few lower-level staff members would be affected, according to the sources. By February, they said, more rank-and-file employees will be affected by the reduction.
Citigroup CEO Faces Pressure as Job Cuts Loom Amidst Share Decline
Fraser is under pressure to turn things around at Citigroup, which has seen a decline in shares due to rising staff and spending in recent years. The CEO, who assumed the role in March 2021, is in a critical position since investors have serious doubts about the bank's ability to meet the performance goals she set forth the previous year.
The company's human resources head informed staff last month that those who have lost their jobs may be able to seek for new employment and that Citigroup will provide severance compensation if appropriate.
Although the exact number of jobs being lost is still unknown, CNBC last week revealed that managers and consultants working on the initiative, internally dubbed "Project Bora Bora," have talked of firing at least 10% of employees in a number of companies.
According to one of the persons, management are now choosing which workers to keep on board and which ones to let go of after creating new organizational charts for Citigroup.
Concerning personnel concerns, employees have taken to internal chat platforms in droves, according to sources who spoke about the upcoming cutbacks but asked not to be named.
The uncertainty surrounding the job cuts adds to the challenges faced by Citigroup in fostering a positive and stable work environment.
As Citigroup navigates these workforce changes, industry observers are keenly watching to see how the bank's restructuring efforts will impact its overall financial performance and whether Fraser's leadership can successfully steer the institution toward renewed stability and growth in the competitive financial landscape.
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