Citigroup is set to provide laid-off employees with partial bonuses determined by their tenure this year as part of the bank’s extensive reorganisation set to conclude by March 2024. Laid-off employees will receive their partial bonuses upon departing from the bank.
According to media reports, Citigroup’s management and consultants are considering reducing the workforce by at least 10 per cent, affecting various key divisions, as part of the restructuring plans led by Jane Fraser, CEO, Citigroup.
The bank had previously announced job cuts as part of a comprehensive plan in September but determined the exact number of layoffs and cost reductions in the current quarter.
Citigroup’s restructuring exercise, known as ‘Project Bora Bora’, is aimed to empower Fraser with greater control, streamline the company, and increase its stock value. The project was still in the early stages, and the number of job cuts may have fluctuated.
The bank enlisted the assistance of Boston Consulting Group. Fraser’s effort to eliminate redundant positions, such as regional managers and co-heads, resulted in executive job reductions, as per reports.
In a global memo sent in October, 2023, Sara Wechter, chief human resources officer, Citigroup, explained this process. Some positions have changed, and new ones may have emerged, and roles that no longer fit the company’s new structure have been phased out.
Employees affected by these changes had the chance to apply for other positions within the company, and Citigroup also offered severance pay and notice periods to eligible employees.