In the process of doing away with five layers of management, Citi’s management layers have been reduced to eight, from the previous 13. The Bank is simplifying its processes and looking at improving efficiency and saving costs in the long run. In doing so, it has so far let go 7,000 people, and this is only the first phase of the trimming process.
While earlier the bank was expected to do away with about 5,000 jobs, it seems to have cut at least 2,000 more roles than was decided. Since the plan was to do away with 20,000 jobs by 2026, it remains to be seen whether more than expected numbers of roles will be eliminated in the remaining two phases of headcount reduction.
Notifications have been issued to a significant number of people already. Not all are being asked to exit immediately. Some are serving 90 days’ notice period.
More than 98 per cent of the bank is now functioning in eight layers with the CEO at the top. That means, managers will have much more control on an average with the span being increased two fold. As per media reports, even the internal governance committees have been dissolved.
In the remaining phases, the bank is expected to go in for business divestments and reduction of tech and support staff.
The reorgansiation exercise was planned last year itself with the aim of simplifying the organisational structure and concentrating on the areas with potential for profit.
