Citigroup CEO initiates overhaul with layoffs

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Citigroup is set to begin layoffs as part of CEO Jane Fraser’s corporate overhaul. Employees affected by the cuts will be informed starting Wednesday, with additional dismissals announced daily through early next week. The layoffs will include chiefs of staff, managing directors, and some lower-level employees. The cuts are expected to extend to more rank-and-file staff by February.

The move aligns with a timeline set by Fraser in a memo on September 13, where she announced five new divisions and changes to the executive team. The restructuring aims to address Citigroup’s stock slump and rising expenses. Fraser faces pressure to improve the bank’s performance and meet investor expectations.

The full extent of the job cuts is still being determined, but internal discussions have suggested dismissals of at least 10% of workers in several businesses. Citigroup has created new organisational charts, and managers are deciding which employees will be retained.

Employees affected by the layoffs may have the opportunity to apply for other positions within the company, and Citigroup will offer severance pay where eligible. The restructuring, known internally as “Project Bora Bora,” is part of Citigroup’s efforts to align its structure with its strategy and improve overall performance.