Citigroup, under the leadership of CEO Jane Fraser, is contemplating significant job cuts as part of a comprehensive restructuring initiative. The bank’s managers and consultants have discussed the potential reduction of at least 10% of the workforce in several major business areas. While Citigroup had previously indicated that job cuts would be part of the overhaul plan unveiled in September, the exact scale of layoffs and cost savings will be determined during the current quarter.
The internal reorganization, internally referred to as “Project Bora Bora,” is designed to provide CEO Jane Fraser with more direct control and streamline Citigroup’s operations. The goal is to simplify the structure of the Wall Street giant and enhance its stock performance.
Although discussions about job cuts are in the early stages, the percentage of staff reductions may evolve as the plan progresses. To aid in this transformative effort, Citigroup has enlisted the services of Boston Consulting Group, an external consulting firm.
CEO Jane Fraser’s strategy to eliminate redundancy and overlapping roles, including regional managers and co-heads, will likely lead to job cuts exceeding 10% for executives. Last month, Citigroup had already announced its intention to reduce management layers from 13 to eight, which resulted in a 15% reduction in functional roles in the top two layers of leadership and the elimination of 60 committees.
While Citigroup’s global headcount remained at 240,000 throughout the year, the bank is committed to implementing these organizational changes to align its structure with its strategic objectives.
A Citigroup spokesperson emphasized the bank’s commitment to delivering its full potential and meeting its obligations to stakeholders. The spokesperson acknowledged that restructuring decisions involve challenging choices but affirmed that they are necessary steps to align the bank’s structure with its strategy and the plan shared at the 2022 Investor Day.
Since taking the helm of Citigroup in 2021, CEO Jane Fraser has undertaken efforts to enhance profitability, simplify the bank’s operations, and address regulatory issues. However, the bank’s stock performance has continued to lag behind its peers, prompting the need for further organizational changes.
