Citigroup CEO Fraser Addresses Layoffs In Call With MDs
Citigroup CEO, Jane Fraser, conducted a conference call on Thursday with managing directors to discuss the bank's comprehensive overhaul, as it continued to eliminate additional leadership roles this week, according to sources familiar with the matter. Managers in markets, risk and investment banking were informed separately about their termination as part of the ongoing reorganisation.
Some were notified that their positions would cease to exist as of 1 February. Further details about the layoffs and severance payments are expected to be announced next week. Citigroup had previously announced plans to cut 20,000 jobs over the next two years, following a challenging fourth quarter that resulted in a USD 1.8 billion loss due to one-off charges.
While periodic updates on the job cuts have been provided, the timing and specifics of the organisational changes have been closely watched by investors and employees. Citigroup's CEO, Jane Fraser, discussed various aspects of the reorganisation and outlined the broader plan for the 20,000 job cuts over the next two years during the call with managing directors.
The current restructuring will reduce headcount by 5,000 people, with an additional 5,000 employees to be cut from selling businesses. Another 10,000 staff will be laid off from support functions, including technology and operations. Citigroup's planned reduction of around 8 per cent of its staff is one of the most significant layoffs on Wall Street in recent years, as Fraser aims to streamline the bank, enhance returns and boost its share price.
The bank is also contending with a 2020 consent order from regulators that mandates corrections to several "longstanding deficiencies" in its internal controls. As part of addressing these concerns, Citigroup appointed Jagdish Rao as its regulatory reporting and remediation head. Rao will report to finance chief Mark Mason and Chief Operating Officer Anand Selvakesari. Previously, Rao served as the chief administrative officer for the personal banking and wealth management business.
