Citigroup Inc. is moving forward with its restructuring plan, set to begin this month and continue until March, according to a spokesperson for the bank. While Citigroup declined to comment on recent reports of job cuts, it is believed that new dismissals will be announced over the coming days.
In a September internal memo, Citigroup outlined its plans for further aligning teams with a new model by the end of November. The final changes will be implemented by the end of the first quarter of 2024.
In a recent statement to Wall Street analysts, Citigroup CEO Jane Fraser indicated that more details on the bank’s efforts to simplify its functions and improve efficiency will be provided early next year.
Fraser emphasized that while expenses are not the main driving factor behind the organizational changes, they will contribute to bending the expense curve in the fourth quarter of 2024. The ultimate goal is to create a simpler firm that can operate more efficiently, better serve clients, and generate value for shareholders.
CNBC previously reported that up to 10% of employees in certain business units may be let go as part of “Project Bora Bora.” Layoffs are expected to commence soon.
As of September 30, Citigroup employed approximately 238,000 individuals, down by 2,000 from the previous quarter. In terms of stock performance, Citigroup’s shares have seen a decline of 1.3% in 2023, while the S&P 500 has experienced a gain of 17.4%.
Citigroup’s restructuring journey is now underway, and the bank’s leadership aims to streamline operations and enhance overall performance in the coming months.
