Citigroup Contemplating 10% Job Cuts In Key Business Segments

Managers and consultants at Citigroup involved in CEO Jane Fraser's restructuring plan have reportedly discussed the possibility of job cuts amounting to at least 10 per cent in various major business segments, according to information from insiders cited by a media house.

Citigroup had previously announced job cuts as part of a comprehensive overhaul introduced in September but had not provided specific figures, indicating that the scale of layoffs and cost savings would be assessed in the current quarter.

The internal codename for the restructuring initiative is "Project Bora Bora," and its primary objective is to grant Jane Fraser more direct control as she endeavours to simplify the operations of the Wall Street giant and enhance its stock price.

While the discussions are still in the early stages, the exact number of job reductions could change, a media house reported. Boston Consulting Group has been enlisted by the bank to assist in the execution of the plan.

Jane Fraser's efforts to eliminate regional managers, co-heads and individuals with overlapping roles are expected to result in job cuts exceeding the initial 10 per cent estimate, particularly among executives.

In the previous month, Citigroup announced its intention to reduce management layers from 13 to eight. Within the top two leadership tiers, the bank had reduced 15 per cent of functional roles and eliminated 60 committees.

Citigroup's global headcount has remained at 240,000 throughout this year, as revealed in its most recent quarterly supplement.

A spokesperson for the bank stated that they are committed to realising the full potential of the bank and fulfilling their obligations to stakeholders. While not confirming the hiring of Boston Consulting Group, the spokesperson acknowledged that the reorganisation process involves making difficult yet necessary decisions to align the bank's structure with its strategy, following the plan unveiled at the 2022 Investor Day.

Since assuming leadership of the banking giant in 2021, Jane Fraser has been working to enhance profits, streamline operations and address regulatory issues. However, the bank's stock performance still lags behind that of its peers.