Citigroup is taking measures on a substantial restructuring exercise, and employees working in compliance and risk management support roles are more likely to be under threat of job loss. Additionally, there is potential vulnerability among technology personnel engaged in functions that overlap.
According to sources, Citigroup is currently in discussions with employees about possible job cuts, with one-on-one meetings already underway. This comes after the bank’s announcement to restructure its management and reduce its workforce, marking the most significant reorganisation in almost 20 years, all in an effort to boost profitability and stock value.
As per the reports, a meeting was conducted on 13 September 2023, to elucidate the changes and reassure their teams that the restructuring would minimise bureaucracy and prioritise activities that contribute to profitability. The meeting was conducted by the executives overseeing revenue-generating sectors.
Moreover, the company is actively working to resolve a regulatory consent order from 2020, which requires them to address a number of longstanding issues with its internal controls. In their statement on 13 September 2023, the company emphasised that the restructuring of their organisation is a key step in advancing Citigroup’s primary goal, which is to achieve their transformation objectives.
In the newly reorganised setup, the CEOs of Citi’s five major businesses will have a direct reporting line to the CEO. Additionally, the bank plans to reduce leadership roles in regions outside of North America.
In recent years, Citigroup has made substantial investments in technology systems to bolster risk management and compliance in response to the consent order. Nevertheless, the company still maintains a considerable workforce with overlapping responsibilities and redundant technological infrastructure, as mentioned by another source.