Citigroup Plans Restructuring with Job Cuts Amid CEO's Bold Changes

Citigroup Inc., one of the world's leading financial institutions, is embarking on a major restructuring effort under the leadership of CEO Jane Fraser.

This restructuring involves a significant reshuffling of roles and responsibilities within the organization, along with an impending wave of job cuts.

The primary goal of this restructuring is to transition Citigroup from its existing structure, which featured three regional chiefs overseeing operations in approximately 160 countries, into a more streamlined model with a sharper focus on five core business units.

While Citigroup has not disclosed specific job cut figures, it is expected that these changes will result in workforce reductions.

The bank emphasizes its commitment to retaining top talent and providing support to employees affected by these transformations.

As part of the restructuring, Citigroup is discontinuing its two long-standing core operating units. The new model will concentrate on five main operating divisions:

1. Services Unit: Headed by Shahmir Khaliq.

2. Trading Division: Led by Andy Morton.

3. US Personal-Banking Division: Under the leadership of Gonzalo Luchetti.

4. Banking Division: Interim leadership by Peter Babej.

5. Wealth Offerings: Andy Sieg, set to join Citigroup later this month from Bank of America Corp.

All five executives will be integral members of CEO Jane Fraser's expanded executive management team, bringing the total to 19 members.

This restructuring aims to reduce unnecessary complexity within the bank and enhance operational efficiency.

Jane Fraser, who will discuss these changes at an investor conference, has been working to streamline Citigroup's sprawling global operations.

However, the restructuring's impact on shareholder sentiment is under scrutiny, as Citigroup shares have declined by 40% since Fraser assumed the role in early 2021, surpassing the decline of any major U.S. competitor during that period.

"We're making bold decisions," Fraser stated. "These changes eliminate unnecessary complexity across the bank and position us for long-term success."

"We'll be saying goodbye to some very talented and hard-working colleagues," she wrote.

Citi had 240,000 employees at the end of the second quarter. That compares with headcounts of about 216,000 at Bank of America and 234,000 at Wells Fargo, the second and fourth largest U.S. lenders, respectively.