Managers and consultants at Citigroup involved in CEO Jane Fraser's restructuring efforts have been in discussions about implementing workforce reductions of a minimum of 10% within various significant business divisions, reported CNBC on Monday.
The bank had previously indicated the possibility of job reductions as a component of the comprehensive reorganisation plan it unveiled in September. However, the specific extent of these layoffs and the associated cost savings are expected to be determined during the current quarter.
Referred to as Project Bora Bora internally, the reorganisation aims to provide CEO Jane Fraser with greater oversight and streamline the operations of the Wall Street powerhouse to enhance its stock performance.
These discussions are in their initial phases, and the actual number of job reductions may be subject to modification, CNBC reported. Citigroup has enlisted the services of Boston Consulting Group to help with the implementation of this plan.
Jane Fraser's drive to eliminate redundancy by removing regional managers, co-heads, and other positions with overlapping responsibilities is anticipated to result in executive job cuts that go beyond the initially proposed 10%, as outlined in the report.
In the previous month, Citigroup announced its intention to streamline its management structure, reducing the number of management layers from 13 to eight. Within the top two layers of leadership, the bank implemented a reduction of 15% in functional roles and eliminated 60 committees, as reported.
Citigroup disclosed in its most recent quarterly supplement last month that its global headcount has remained at 240,000 throughout this year.
A spokesperson for the bank stated, "As we've said previously, we are committed to delivering the full potential of the bank and meeting our commitments to our stakeholders." However, the spokesperson declined to confirm whether the bank had enlisted the services of Boston Consulting Group for its restructuring efforts.
"We've acknowledged the actions we're taking to reorganize the firm involve some difficult, consequential decisions, but they're the right steps to align our structure to our strategy and deliver the plan we shared at our 2022 Investor Day."
Since assuming leadership of the banking giant in 2021, Jane Fraser has made concerted efforts to enhance profitability, streamline the bank's operations, and address regulatory challenges. Despite these endeavours, the bank's stock performance has still fallen behind that of its peers.