Citigroup Weighs Potential 10% Job Cuts in Key Business Areas

Citigroup’s management and consultants working on CEO Jane Fraser’s reorganization plan are reportedly discussing potential job cuts of at least 10% across several major business units, according to a report. The bank has indicated that layoffs are part of a comprehensive overhaul announced in September, although a detailed estimate of the scale of cuts and cost savings is expected in the current quarter.

Internally referred to as “Project Bora Bora,” this reorganization aims to provide Fraser with more direct control as she seeks to simplify the operations of the banking giant and improve its stock performance. The discussions are still in their early stages, and the final number of job cuts may vary. The bank has engaged a consulting firm to assist with this initiative.

Fraser’s strategy includes the removal of regional managers, co-heads, and others in redundant roles, which could result in larger than anticipated cuts for executive positions. Last month, the bank announced a reduction in management layers from 13 to eight, cutting 15% of roles within the top two layers of leadership and eliminating 60 committees.

As of this year, Citigroup’s global workforce remains at 240,000, according to the bank’s latest quarterly report. A bank spokesperson emphasized their commitment to realizing the bank’s full potential and meeting stakeholder commitments, but declined to confirm the hiring of the consulting firm.

The spokesperson acknowledged that the reorganization involves difficult decisions but insisted these steps are necessary to align the bank’s structure with its strategic goals as outlined during the 2022 Investor Day. Since taking over in 2021, Fraser has focused on enhancing profitability, streamlining operations, and addressing regulatory challenges, although the bank’s stock performance has not kept pace with its industry peers.