Under CEO Jane Fraser's leadership, Citigroup Inc has begun a major restructuring effort, resulting in the layoff of more than 300 senior managers. Today, some affected employees received notification of these layoffs as Citigroup enters a new phase in its ongoing evolution.
According to Investing.com, this action affects approximately 10% of the company's senior management and is a step in a larger strategy to simplify the management structure and speed up decision-making at the firm.
The bank's employees were informed about the shift to a new operating model and the accompanying organisational changes. Although the precise number of future job cuts hasn't been disclosed, these initial layoffs signify a significant move in Fraser's strategy to reshape the bank's operations.
The restructuring aims to simplify Citigroup's intricate management hierarchy, historically causing delays in responding swiftly to market changes and customer needs. With a reduction in senior management layers, Citigroup expects to enhance agility and be better positioned to carry out its strategic initiatives.
Citigroup employees are anticipating news about management changes and potential layoffs on Monday as the next phase of the bank's extensive reorganisation unfolds. With over 240,000 employees worldwide, there is keen interest in the details of the anticipated layoffs, although the company has refrained from providing comments on the matter.
In October, Citigroup revealed plans to reduce management layers from 13 to 8, marking its most significant overhaul in decades. The bank has already streamlined functional rules by 15% and eliminated 60 committees from the top two leadership layers.
As part of its restructuring, the third-largest US lender intends to do away with co-heads of decisions and regional roles, cut half of internal financial management reporting, and centralise decision-making.
Employees in technology roles with overlapping functions and those in compliance and risk management support staff are reportedly at risk of potential layoffs.