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Global banking and investment giant Citigroup, Inc. (C), is set to eliminate over 300 senior manager positions as part of Chief Executive Officer Jane Fraser's efforts to streamline the Wall Street giant.
The Manhattan, New York City-based company is targeting employees two tiers below Fraser's top management team, according to sources familiar with the matter, as recently reported by Bloomberg.
These cuts represent approximately 10 percent of the employees at that level. Citigroup stated, "Today we shared with our colleagues the next layer of changes across many of our businesses ... to align Citi’s organizational structure with our new, simplified operating model." The company did not specify the number of layoffs. The statement further emphasized the necessity of these "difficult, consequential decisions" to align the firm's structure with its strategy and consistently deliver excellence to clients.
The bank has indicated that these employment reductions may extend globally into the upcoming year. CEO Fraser's plan involves dismantling management tiers to hasten decision-making within the bank. However, the final number of workers facing layoffs has not been disclosed by the corporation. In a memo to staff, Fraser acknowledged the challenges, saying, "Building a winning bank requires a great deal of commitment, hard work, and resilience from each of us."
According to the memo, the bank remains on course to announce subsequent stages of change early in 2019 and complete the final changes by the end of the first quarter. Citigroup's stock, listed on the New York Stock Exchange (NYSE), saw a minor decline of 0.22 per cent to $45.25 at the close of trading yesterday.
Citigroup is now gearing up for its most extensive restructuring in two decades. The plan involves divesting the company of its two primary operational divisions and focusing on five key areas, including trading, banking, services, wealth management, and US consumer offerings. Prior to this reorganization plan, Citigroup had already incurred approximately $650 million in severance costs from eliminating 7,000 jobs during the first nine months of the year.
Remarkably, despite these cost-cutting measures, Citigroup's headcount of 240,000 employees has remained stable over the last four quarters. The bank has additionally hired more IT staff and personnel to address two consent orders received from regulators, indicating a commitment to resolving regulatory issues while streamlining its operations.