Citigroup layoffs: Employees expect job cuts, management reshuffle on Monday

Citigroup layoffs: Amid CEO Jane Fraser’s corporate overhaul plan, Citigroup employees expect announcements about management changes and layoffs on Monday next weel. Citigroup employees are expecting these deveopments in the wake of next phase of the bank’s sweeping reorganization, according to four people familiar with the situation. However, more details in regard to layoff is yet to come as Citigroup employs 2.40 lakh employees across world. As per the Financial Times, the Citigroup declined to commend on its ongoing layoffs and bank overhaul plans.

Citigroup job cuts

In October 2023, Citigroup started to work upon CEO Jane Fraser’s corporate overhaul plan. Citigroup aannounced plans to cut management layers from 13 to eight as part of its biggest overhaul in decades. In the two top layers of leadership, Citi reduced 15 per cent of functional roles and eliminated 60 committees, it said in its third quarter earnings presentation.

The third-largest US lender will also eliminate co-heads of divisions and regional roles, cut 50 per cent of internal financial management reporting and centralize decision making, it said in October.

Support staff in compliance and risk management, and technology staff working on overlapping functions are at risk of being laid off, Reuters reported in September.

Citigroup CEO Jane Fraser's corporate overhaul plan aims to simplifying the sprawling lender after getting rid of five layers of management. The company has said that cuts would begin by the end of this month and continue through the end of the first quarter.

Citigroup news today

The bank hasn’t put a number on the overall layoffs from a revamp that will refocus the firm on five key businesses. Even before the restructuring plan began, Citigroup had racked up about $650 million in severance charges as part of cutting 7,000 positions in the first nine months of this year.

Still, firmwide headcount has actually remained flat for the past four quarters at 240,000 employees. The bank has added technology staffers and other employees to help with its efforts to resolve a pair of consent orders the firm received from regulators.

(With inputs from Reuters and Bloomberg)