Citigroup, in its most significant restructuring efforts in decades, is currently in the process of evaluating staff assignments to determine their future roles within the company. This information was disclosed in a global memorandum distributed to employees on Wednesday. The memo, authored by Citigroup’s Chief Human Resources Officer, Sara Wechter, outlined the forthcoming changes, stating, “Some roles will change, new roles may be created, and new roles that do not fit our new structure will be eliminated. This next layer of change is scheduled to be announced in November.”
Employees who may be affected by these shifts will be eligible for severance pay and will receive advanced notice, according to the memo. Last month, CEO Jane Fraser had revealed plans for a comprehensive corporate restructuring, focusing on divesting non-core business segments and redirecting efforts towards more profitable sectors. While specific numbers regarding job losses were not provided in Fraser’s memo, it emphasized that staff reductions were aimed at redirecting resources towards client-oriented work. “We’ll be saying goodbye to some very talented and hard-working colleagues,” Fraser expressed in the memo.
Currently, Citi’s headcount stands at 240,000 employees, as of the second quarter of this year, placing it below industry peers Bank of America (216,000 employees) and Wells Fargo (234,000 employees). During a recent television appearance, Jane Fraser emphasized that Citigroup had no room “for bystanders or people who want to stand on the sidelines.”
In addition to the US, Citigroup is also initiating a consultation process in the United Kingdom, where roles under evaluation will be closely monitored. The bank anticipates that some roles will remain unchanged while others will undergo modifications. Citigroup envisions that these adjustments will lead to an increase in share prices and provide Fraser with more immediate oversight of the bank’s ventures.
According to Reuters the bulk of the reductions will likely occur in areas such as compliance and risk management, specifically within overlapping teams, while preserving the integrity of more lucrative branches. Citigroup has declined to comment on the global memorandum. Through these restructuring efforts, Citigroup aims to enhance shareholder value and increase operational efficiency. The ultimate success of these endeavors remains to be seen.
Source: Reuters
