Citigroup CEO Jane Fraser conducted a conference call with managing directors to discuss the bank’s ongoing restructuring efforts, which include additional leadership changes. This move follows last week’s announcement that Citigroup plans to cut 20,000 jobs over the next two years. Managers in markets, risk, and investment banking were reportedly informed of their layoffs as part of the reorganisation. Some were told their positions would cease to exist as of February 1. Citigroup, facing challenges and aiming to boost returns, has not yet provided specific details about the layoffs and severance payments, with more information expected to be announced next week.
During the call, Fraser discussed various aspects of the reorganisation and outlined the broader plan for the 20,000 job cuts. The headcount reduction will involve 5,000 people in the current reorganisation, another 5,000 from selling businesses, and an additional 10,000 from support functions like technology and operations. Citigroup’s planned cut of approximately 8% of its staff ranks among the significant layoffs on Wall Street in recent years. The restructuring is a key component of Fraser’s strategy to streamline the bank and enhance its financial performance.
Citigroup is also addressing a 2020 consent order from regulators, which highlighted “longstanding deficiencies” in its internal controls. In response to these challenges, the bank has appointed Jagdish Rao as its regulatory reporting and remediation head, reporting to finance chief Mark Mason and Chief Operating Officer Anand Selvakesari. Rao previously served as the chief administrative officer for the personal banking and wealth management business.
