Citigroup Initiates Layoffs in CEO Jane Fraser’s Corporate Restructuring, 2023.
According to sources familiar with the matter speaking to CNBC, Citigroup is on the brink of significant changes as CEO Jane Fraser initiates a corporate overhaul that includes impending layoffs.
The layoffs, set to commence imminently, will affect various tiers of employees, starting from chiefs of staff and managing directors and extending down to some lower-level positions.
Employees are expected to receive notifications about these cuts beginning on Wednesday, with daily announcements of new dismissals anticipated through the early part of the following week.
The impact will broaden to encompass more rank-and-file staff by February, as indicated by individuals familiar with the situation.
Fraser had previously outlined a restructuring plan in a memo dated September 13, which introduced five new divisions reporting directly to her. This strategic move resulted in the departure of several senior executives.
The CEO indicated a timeline for subsequent restructuring phases, noting that the next phase of disruption would be communicated and implemented by the end of November, with final changes slated to be completed by the end of March 2024.
The pressure on Fraser to reinvigorate Citigroup stems from the bank’s stagnant stock performance and a surge in headcount and expenses in recent years. Since assuming her role in March 2021, Fraser faces mounting investor scepticism regarding the bank’s ability to meet the performance targets outlined the previous year.
Acknowledging the impact on affected employees, Citigroup assured workers that those losing their roles might have opportunities to apply for other positions within the company.
Additionally, the company intends to offer eligible individuals severance pay, as communicated by its human resources chief in a statement to employees the previous month.
While the scope of the job cuts remains deliberated, internal discussions, under the banner of “Project Bora Bora,” have hinted at potential dismissals affecting at least 10% of workers across multiple business units, according to CNBC’s previous reporting.
Managers and consultants are actively engaged in determining the fate of employees, per insider sources, with newly crafted organizational charts aiding in the decision-making process. These deliberations involve assessing which employees will be retained and which will be affected by the forthcoming restructuring.
The impending cuts have sparked a flurry of inquiries and concerns among Citigroup employees, leading to heightened activity on internal communication platforms. However, these individuals chose to remain anonymous, citing the sensitivity of discussing personnel matters.
When approached for comment, a Citigroup spokeswoman reiterated the firm’s acknowledgement of the challenging decisions associated with the ongoing reorganization.
The spokeswoman reiterated that these steps are integral to aligning the company’s structure with its strategic goals, as previously shared during the 2022 Investor Day.
As Citigroup navigates this transformative phase under Fraser’s leadership, the imminent changes reflect a concerted effort to streamline operations, realign strategies, and navigate a shifting financial landscape.
The impact on employees remains a focal point, with the company endeavoring to balance necessary structural adjustments with support mechanisms for affected staff.
