New York, January 19, 2024, The Europe Today: Citigroup’s CEO, Jane Fraser, conducted a conference call on Thursday with managing directors to discuss the bank’s extensive overhaul, revealed sources familiar with the matter. This comes as part of the bank’s plan to cut 20,000 jobs over the next two years following a challenging fourth quarter that resulted in a $1.8 billion loss.
According to sources, managers in markets, risk, and investment banking were informed about their departures as part of the ongoing reorganization. Some were notified that their positions would cease to exist as of February 1. Detailed information about the layoffs and severance payments is expected to be disclosed next week.
Fraser’s call, which addressed various aspects of the reorganization, has not been reported until now. The CEO outlined the broader plan for the 20,000 job cuts, stating that 5,000 people would be affected in the current reorganization, while another 5,000 employees would be eliminated through selling businesses. The remaining 10,000 job cuts will come from support functions such as technology and operations.
Citigroup, declining to comment on the recent developments, is undergoing one of the most significant layoffs on Wall Street in recent years. Fraser aims to streamline the bank, enhance returns, and boost share prices through this extensive overhaul.
Additionally, Citigroup is addressing a 2020 consent order by regulators, requiring corrections to “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.
Investors and employees are closely monitoring the timing and details surrounding these organizational changes as Citigroup continues to navigate a transformative period.
