Citigroup Axes 300 Senior Manager Roles in Latest Management Overhaul

Citigroup Inc. is slashing more than 300 employees which will affect senior manager roles. The layoffs are said to be part of CEO Jane Fraser’s restructuring plans in a push to simplify the bank.

According to Bloomberg, Citigroup already announced the cuts to employees so they are bracing for it. Employees at two levels below the chief executive’s management team are set to lose their jobs as shared by the source who is familiar with the matter. The 300 individuals who will be terminated are equivalent to 10% of the employees of the mentioned level.

The Management’s Simplification Plan

The latest management overhaul at the New York headquarters is the biggest in the last two decades. The restructuring is so wide that includes plans of discontinuing two of Citigroup’s core operating units and redirecting focus on just five main business categories which are banking, trading, wealth management, financial services, and consumer offerings in the U.S.

The reduction of employees already started even before the overhaul was announced. Now the financial company said the layoffs will continue in 2024 and will affect the offices around the world. It was explained that job terminations are included in Fraser’s strategy to get rid of some layers in the management.

She is aiming to remove the co-head structures so they can speed up decision-making across the company. And since there will be more job cuts in the future, the exact number of workers who will be ultimately dismissed in the process of restructuring is still unknown.

“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 organizational structure with our new, simplified operating model,” Citigroup said in a statement. “As we have acknowledged, the actions we’re taking to reorganize the firm involve some difficult, consequential decisions, but we believe they are the right steps to align our structure with our strategy and ensure we consistently deliver excellence to our clients.”

Leadership Reshuffle

Meanwhile, Reuters reported that as some senior managers are being let go, Citigroup named the new head of banking in Europe. As part of the reshuffle, Nacho Gutiérrez-Orrantia was appointed CEO of the European cluster and he will be responsible for the bank’s entire business in the region.

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