Citigroup’s CEO States There’s ‘No Room for Bystanders’ in Reorganization, Reports Reuters

By Tatiana Bautzer

NEW YORK – Citigroup CEO Jane Fraser stated on Friday that senior employees are supportive of the company’s extensive reorganization, emphasizing that there is "no room for bystanders" in what marks the bank’s most significant overhaul in nearly 20 years.

"The case for change is quite clear – our teams want to succeed, and our top performers quickly rallied behind this initiative," Fraser shared in an interview.

She further noted, "We don’t have room for bystanders; we don’t have room for those who wish to remain on the sidelines."

Fraser mentioned that the bank plans to provide updates to investors regarding estimated savings from the reorganization in the upcoming fourth quarter.

Reports indicate that discussions about potential layoffs began shortly after the reorganization announcement, with support staff in compliance and risk management being among those likely to be affected.

On economic forecasts, Fraser anticipates that the Federal Reserve will raise interest rates in November but expressed hope that further hikes may not be necessary.

She believes the U.S. economy is on track for a soft landing, avoiding a growth contraction.

"The recession, if it occurs, will be quite manageable," Fraser remarked. While consumer spending remains robust, she noted a slowdown among lower-income demographics.

Similarly, Bank of America CEO Brian Moynihan also conveyed optimism about a potential soft landing for the economy, highlighting analogous trends in consumer spending.