Citigroup Initiates Major Overhaul, Eliminating Over 300 Senior Management Roles

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In a significant move to streamline operations, Citigroup Inc. is set to eliminate more than 300 senior manager positions as part of CEO Jane Fraser’s strategy to simplify the Wall Street giant. The cuts, affecting staff two levels below Fraser’s executive management team, were initiated on Monday, constituting approximately 10% of the workforce at that level.

The restructuring, aimed at accelerating decision-making processes, is a crucial aspect of Fraser’s broader plan to eliminate management layers and dismantle co-head structures. While the exact number of future job cuts remains undisclosed, Citigroup has signalled that the workforce reductions may extend globally into the next year.

In a statement, Citigroup acknowledged the organizational changes, stating, “Today we shared with our colleagues the next layer of changes across many of our businesses and functions as we continue to align Citi’s organisational structure with our new, simplified operating model.” The statement did not specify the number of cuts but emphasized that the decisions were challenging yet necessary to align the structure with the bank’s strategy and ensure consistent client excellence.

CEO Jane Fraser, in a memo to staff, recognized the significant commitment required from the workforce and expressed awareness of the challenges posed. “Building a winning bank requires a great deal of commitment, hard work and resilience from each of us,” Fraser noted. The bank aims to announce the next phases of organizational changes early next year, with the entire restructuring anticipated to conclude by the end of the first quarter.

Fraser’s leadership has been characterized by bold initiatives to reshape Citigroup’s operations and enhance efficiency. The latest overhaul reflects a broader industry trend as financial institutions adapt to evolving market dynamics and seek to optimize their structures for agility and competitiveness.