According to media reports, Citigroup’s management and consultants are considering reducing the workforce by at least 10 per cent, impacting various key divisions as part of the restructuring plans of Jane Fraser, CEO, Citigroup.
The bank had previously announced job cuts as part of a comprehensive plan in September but will determine the exact number of layoffs and cost reductions in the current quarter.
Citigroup’s restructuring exercise, referred to as ‘Project Bora Bora’, aims to empower Fraser with greater control, streamline the company and increase its stock value. The project is still in the early stages, and the number of job cuts may fluctuate.
The bank has enlisted Boston Consulting Group for assistance. Fraser’s effort to remove redundant positions, such as regional managers and co-heads, will result in executive job reductions, as per the report.
In a global memo sent on 4 October 2023, Sara Wechter, chief human resources officer, Citigroup had explained this process. Some positions will change, and new ones may emerge, but roles that no longer fit the company’s new structure will be phased out. More details about this transformation will be disclosed in November.
Employees affected by this will have the chance to apply for other positions within the company. Citigroup will also offer severance pay and notice periods to eligible employees.
