Citigroup layoffs begin as part of CEO Jane Fraser’s overhaul

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Citigroup is poised to embark on a series of layoffs in the wake of CEO Jane Fraser’s comprehensive corporate restructuring initiative, sources with knowledge of the matter revealed. The affected personnel, encompassing chiefs of staff, managing directors, and select lower-level employees, are set to receive notifications starting Wednesday, with a gradual release of additional dismissals expected through early next week. This strategic move is in line with Fraser’s outlined timeline from a September 13 memo, where she introduced five new divisions directly reporting to her, resulting in the departure of several senior executives. The restructuring seeks to address challenges faced by Citigroup, including a stock slump and escalating expenses. While the complete scope of job cuts remains under assessment, internal discussions under the internal project moniker “Project Bora Bora” suggest potential dismissals amounting to at least 10% of the workforce across various business segments. Citigroup, under Fraser’s leadership since March 2021, confronts investor skepticism regarding its ability to meet previously outlined performance targets.

The organizational changes are expected to be communicated and implemented by the end of November, with the final adjustments slated for completion by March 2024, aligning with Fraser’s strategic vision as outlined in her earlier memo. Affected employees may have the opportunity to explore alternative positions within the company, and Citigroup has committed to providing eligible individuals with severance pay. Despite the impending changes, Citigroup remains focused on aligning its structure with its strategic goals and delivering on the plan shared during its 2022 Investor Day. The full extent of the job cuts is subject to ongoing evaluation, with new organizational charts already created to guide decisions on employee retention. This internal restructuring has spurred an influx of inquiries on internal chat platforms, as employees seek clarity on the impending changes. Citigroup remains committed to making the necessary, albeit challenging, decisions to realign its structure and strategy effectively. The company’s stance is anchored in its acknowledgment that these actions are crucial steps in achieving the strategic objectives outlined during the 2022 Investor Day.