Citigroup is reportedly contemplating substantial job reductions of at least 10 per cent in several of its major business segments as part of a comprehensive reorganisation effort led by CEO Jane Fraser, according to information from sources familiar with the process, as reported by CNBC.
Citigroup had previously signalled the possibility of job cuts as it unveiled its sweeping overhaul plan in September. However, the scale of these layoffs and cost savings will be evaluated in the current quarter.
The internal initiative, known as “Project Bora Bora,” is aimed at providing CEO Jane Fraser with more direct control as she endeavours to simplify Citigroup and enhance its stock performance. These discussions are still in the early stages, and the exact number of job cuts may fluctuate as the planning progresses. Citigroup has enlisted the services of Boston Consulting Group to facilitate this strategic transformation.
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The restructuring plan, driven by Fraser’s objective to eliminate regional managers, co-heads, and individuals with overlapping roles, is expected to result in job reductions extending beyond the initial 10 per cent in the executive ranks. In the previous month, Citigroup announced plans to reduce its management layers from 13 to eight, which involved a 15 per cent reduction in functional roles within the top two leadership layers and the elimination of 60 committees.
According to Reuters, the bank has maintained a global headcount of 240,000 throughout this year, as disclosed in its most recent quarterly supplement. While a spokesperson for Citigroup declined to comment on the hiring of Boston Consulting Group, they emphasised the bank’s commitment to fulfilling its potential and meeting its commitments to stakeholders.
The spokesperson acknowledged the challenging and consequential decisions associated with the ongoing reorganisation but stressed that they are necessary steps to align the bank’s structure with its strategic objectives, as outlined during the 2022 Investor Day.
Since assuming the leadership of Citigroup in 2021, CEO Jane Fraser has been working to enhance profitability, streamline the bank’s operations, and address regulatory issues. Despite these efforts, Citigroup’s stock performance has lagged behind its peers.
(With inputs from Reuters)
