Citigroup Nears Completion of Restructuring with 5,000 Layoffs

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Citigroup is nearing the final stages of a comprehensive restructuring aimed at streamlining its operations and enhancing performance. The banking giant has reduced its workforce by 5,000 employees since September as part of this initiative.

CEO Jane Fraser informed employees via a memo that the most significant phase of staffing adjustments, involving reassignments and departures, will be announced from Monday to Thursday. Fraser acknowledged the challenges faced during this period but emphasized the transformative nature of the changes, positioning Citigroup for enhanced competitiveness.

The restructuring, first unveiled in September, entailed a reduction in management layers from 13 to 8. This latest round of adjustments marks the completion of Citigroup’s revamped organizational structure and aligns with its broader objective of trimming its global workforce by 20,000 over the next two years.

According to Fraser, the elimination of 1,500 managerial positions, constituting 13% of its global leadership, was announced alongside the release of the company’s fourth-quarter results in January. These changes are projected to generate approximately $1 billion in annual savings.

Wells Fargo analyst Mike Mayo hailed the restructuring efforts as a significant milestone for Citigroup. He noted that the simplification process, spanning seven months, underscores the bank’s ability to meet its targets systematically. Mayo reaffirmed Citigroup’s stock as his top pick, citing the potential benefits of the organizational streamlining.