Citigroup’s CEO, Jane Fraser, conducted a conference call with managing directors to discuss the bank’s ongoing restructuring, revealing more leadership role eliminations.
Managers in various departments, including markets, risk, and investment banking, were informed of their layoffs as part of the organizational changes.
Some were told their positions would cease as of February 1, with additional details about severance payments expected to be announced next week.
Details of the Organizational Changes and Job Cuts Discussed:
During the call, Fraser addressed various aspects of the ongoing reorganization, providing insights into the broader plan of cutting 20,000 jobs over the next two years.
The current phase involves a headcount reduction of 5,000 people, with another 5,000 employees to be laid off from selling businesses.
Additionally, 10,000 staff will be cut from support functions like technology and operations. The restructuring aims to streamline Citigroup and enhance its returns and share price.
Significance of Citigroup’s Layoffs in the Financial Industry:
Citigroup’s planned cut of approximately 8% of its staff stands out as one of the most significant layoffs on Wall Street in recent years.
The overhaul is a key part of CEO Jane Fraser’s strategy to reshape the bank and address internal control deficiencies outlined in a 2020 consent order by regulators.
The call and ongoing announcements provide investors and workers with insights into the timing and details of the organizational changes.