News: Citigroup braces for massive layoffs: Firm's largest reorganisation set for November

Strategic HR

Citigroup braces for massive layoffs: Firm's largest reorganisation set for November

The company planned to provide severance pay and appropriate notice periods for those eligible, as outlined in the memo. The details of this memo had not been made public until now.
Citigroup braces for massive layoffs: Firm's largest reorganisation set for November

Citigroup managers are presently evaluating staff lists to ascertain, by November, the individuals who will remain in their current roles, be reassigned, or face layoffs as part of the company's biggest reorganisation in decades.

"Some roles will change, new roles may be created, and roles that do not fit our new structure will be eliminated. This next layer of change is scheduled to be announced in November," Sara Wechter, the bank's chief human resources officer, wrote in the memo. 

As per a worldwide internal memo revealed to Reuters, employees whose roles are terminated might have the opportunity to seek other job openings. The company plans to provide severance pay and appropriate notice periods for those eligible, as outlined in the memo. The details of this memo have not been made public until now.

During a subsequent employee town hall on Thursday, when questioned about the layoffs, bank leaders mentioned that the reductions would target specific job functions and regions. However, they did not divulge any specific details. 

Citigroup additionally organised a gathering of its managing directors on Wednesday, reported Reuters. Executives discussed the actions outlined in Wechter's memo. The banking staff received approximately 15 minutes of prior notice about the meeting, which concluded within just 30 minutes. 

In the previous month, Citi CEO Jane Fraser revealed extensive alterations aimed at streamlining the bank's structure following the divestment from non-core markets and a strategic focus on profitable areas. 

However, Fraser's internal communication to the staff did not specify the anticipated count of job reductions. Instead, she highlighted that these departures would enable revenue-generating staff and dealmakers to allocate their time more effectively toward client engagement.

"We'll be saying goodbye to some very talented and hard-working colleagues," Fraser wrote at the time, according to Reuters. 

As of the end of the second quarter, Citi's employee count stood at 240,000. In comparison, Bank of America had approximately 216,000 employees, and Wells Fargo, the second and fourth-largest U.S. lenders respectively, had about 234,000 employees. 

Firm’s hybrid work model rules

Back in June, Citigroup made an announcement regarding its plans to enforce accountability among employees in compliance with the rules of the hybrid work model. The bank initiated assessments to ensure that employees adhered to the mandatory requirement of working in the office for a minimum of three days per week.

"We are committed to our hybrid work model and proud of the flexibility it provides our colleagues to work at least three days per week in the office and up to two days remotely," the bank said in a statement. 

“We have firm expectations for office attendance and know that the majority of our employees are compliant with their requirements. As necessary, we hold colleagues accountable for adhering to their in-office days," the statement added.

According to Bloomberg's report, the bank planned to factor office attendance into the evaluation of employees' performance and compensation.

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Topics: Strategic HR, #Layoffs, #HRTech, #HRCommunity

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