Citi initiates restructuring with significant job cuts

Citi initiates restructuring with significant job cuts
Thousands could be affected as bank slashes positions.
NOV 20, 2023

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.

Here are the latest tools advisors need to improve the client experience

Latest News

Farther adds $120M firm with science-backed approach to wealth management
Farther adds $120M firm with science-backed approach to wealth management

The latest addition to the tech-driven firm combines wellness and finances.

Cutting back on fun: a third of Americans plan to reduce spending on vices
Cutting back on fun: a third of Americans plan to reduce spending on vices

Your clients are likely to be spending on vices, depending on their generation.

Gold continues to shine, but will jobs data change that?
Gold continues to shine, but will jobs data change that?

Traders are awaiting the latest snapshot of US economic strength.

Veritas could be about to snap up one of Wall Street’s oldest names
Veritas could be about to snap up one of Wall Street’s oldest names

Private equity firm reportedly in talks to make an acquisition.

Trump wants to scrap one of private equities' tax breaks, again
Trump wants to scrap one of private equities' tax breaks, again

Exemption enjoyed by PE and VC firms was under fire in his first term too.

SPONSORED Taylor Matthews on what's behind Farther's rapid growth

From 'no clients' to reshaping wealth management, Farther blends tech and trust to deliver family-office experience at scale.

SPONSORED Why wealth advisors should care about the future of federal tax policy

Blue Vault features expert strategies to harness for maximum client advantage.