Citigroup is undergoing a major restructuring plan led by CEO Jane Fraser, who aims to simplify the bank’s structure and cut down management layers. Employees are expecting announcements regarding potential layoffs and management changes next week.
Citigroup, the third-largest U.S. lender, is undergoing a major restructuring plan led by CEO Jane Fraser, who aims to simplify the bank’s structure and cut down management layers.
As the plan progresses, employees are expecting announcements regarding potential layoffs and management changes next week.
The restructuring plan, which was announced in October 2023, involves reducing the number of management layers from 13 to eight, eliminating co-heads of divisions and regional roles, and focusing on five key businesses: trading, banking, services, wealth management, and U.S. personal banking.
The plan is expected to result in significant job cuts, although the exact number has not been disclosed yet. According to Reuters, support staff in compliance, risk management, and technology roles are likely to face layoffs.
The restructuring plan is part of Fraser’s vision to streamline operations, speed up decision-making, increase accountability, and improve customer service.
Fraser, who became the first female CEO of Citigroup in March 2021, has also pledged to transform the bank’s risk and control environment, modernize its infrastructure, and invest in its culture.
Fraser said the plan will help the bank deliver on its medium-term targets and transformation.
The restructuring plan also reflects Citigroup’s efforts to adapt to the changing dynamics of the financial industry, which is facing increased competition, digital disruption, and regulatory challenges.
Citigroup has been lagging behind its peers in terms of profitability and stock performance and has faced several issues with regulators and customers in recent years.
The bank has also announced plans to exit 13 Asian and European retail markets to focus on its core strengths.
Meanwhile, the bank has also been exploring new opportunities and partnerships in the emerging blockchain and cryptocurrency fields.
For instance, the bank has recently partnered with AvaCloud, a Web3 launchpad that helps businesses build and scale custom blockchains, to conduct testing on the execution of forex trades.
The bank has also expressed interest in offering crypto services to its clients, such as custody, trading, and financing.
