Citigroup has concluded a significant reorganization aimed at streamlining its operations and boosting efficiency, resulting in a reduction of 5,000 employees since September. This week, the bank will inform staff of the largest wave of reassignments and departures, as detailed in a memo from CEO Jane Fraser.
The restructuring, initiated in September, has decreased management layers from 13 to eight, aligning with Citigroup’s objective to cut its global workforce by 20,000 over the next two years.
In January, Fraser reported the elimination of 1,500 managerial positions, constituting 13% of the company’s leadership, and projected annual savings of approximately $1 billion from these changes.
“These past months have not been easy,” Fraser acknowledged in her memo. “The changes we’ve made are the biggest that most of us have experienced at Citi, putting us on the front foot and improving our competitiveness.”
Citigroup’s efforts to streamline operations are part of a broader strategy to enhance performance and competitiveness in the financial sector. The bank has not provided additional comments beyond Fraser’s memo.
The completion of this reorganization marks a pivotal moment for Citigroup as it seeks to position itself more effectively in the market. The reduction in workforce and management layers is expected to lead to improved decision-making processes and operational efficiency.
As the banking industry continues to evolve, Citigroup’s strategic moves reflect a commitment to adapting to changing market dynamics and maintaining a competitive edge. The long-term impact of these changes will be closely monitored by stakeholders and industry observers.