Citigroup has embarked on a major restructuring process, affecting numerous employees at the start of Thanksgiving week. The bank, following months of planning, is set to implement a series of job cuts as part of what it is calling “a strategic realignment.”
This realignment involves reshuffling teams, dismantling an international management layer and instead focusing on five key businesses: trading, banking, services, wealth management and U.S. consumer offerings. The initial phase of the restructuring will see the termination of more than 300 senior manager roles, according to Bloomberg — about 10% of workers at that level. Further reductions at lower levels are expected, which could affect thousands of additional staff members, with the objective of completing the process by the end of the first quarter.
"The actions we're taking to reorganize the firm involve some difficult, consequential decisions, but we believe they are the right steps to align our structure with our strategy," CEO Jane Fraser said in a statement.
A memo from Fraser to staff on Monday detailed the impending organizational changes, outlining the bank's strategic direction and the rationale behind the restructuring.
“The challenges confronting us can sometimes be what dominates the discussion about Citi,” the memo read, “but it’s important that we don’t lose sight of the goals we’re working to achieve and the progress under way.”
The bank's decision to undertake such substantial job cuts reflects a broader trend in the financial industry to streamline operations and adapt to changing market conditions. Citibank had already announced that it wanted to strip out layers of management, reducing 13 levels to just 8.
"We have taken hard, consequential, tough decisions here," Fraser said at the time. "They are not going to be universally popular within our bank. It's going to make some of our people very uncomfortable. I am absolutely fine with that ... It is absolutely the right thing to do for our shareholders."
For many Citigroup employees, this Thanksgiving week marks a period of uncertainty and change as the bank navigates through its organizational restructuring.
Plus, a $400 million Commonwealth team departs to launch an independent family-run RIA in the East Bay area.
The collaboration will focus initially on strategies within collective investment trusts in DC plans, with plans to expand to other retirement-focused private investment solutions.
“I respectfully request that all recruiters for other BDs discontinue their efforts to contact me," writes Thomas Bartholomew.
Wealth tech veteran Aaron Klein speaks out against the "misery" of client meetings, why advisors' communication skills don't always help, and AI's potential to make bad meetings "100 times better."
The proposed $120 million settlement would close the book on a legal challenge alleging the Wall Street banks failed to disclose crucial conflicts of interest to investors.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.
