Citigroup to axe employees as part of its restructuring plans
Citigroup is gearing up for a major shake-up, with managers currently assessing staff positions to determine who will stay, be reassigned, or let go by November. In a memo from the bank's Chief Human Resources Officer, Sara Wechter, it was revealed that some roles will change, new ones may be created, and some eliminated. Employees whose jobs are cut may have the chance to apply for other positions, and the company will provide severance pay and notice periods where applicable.
Managing Directors' meeting and CEO's message
A surprise meeting of Citigroup's Managing Directors took place recently, where executives discussed the plans outlined in Wechter's memo. Bankers were given just 15 minutes' notice about the meeting, which lasted 30 minutes. Last month, CEO Jane Fraser announced a major reorganization aimed at simplifying the bank's structure after divesting from non-core markets and focusing on profitable areas. Fraser didn't reveal the number of job cuts but said the departures would allow revenue-generating staff and dealmakers to concentrate on clients.
UK consultations and potential redundancies
Citigroup has also started consultations in the UK after alerting employees about potential job losses. The bank is keeping colleagues informed about their next steps to align the structure with their strategy and is consulting with the London Consultation Forum about roles currently being reviewed. Some roles may change, while others will stay largely the same. Citigroup hopes that this overhaul will boost its stock price, and grant the CEO more direct control over its businesses.
Focus of job cuts and upcoming earnings report
The cuts are likely to target support zones with overlapping teams, such as compliance and risk management, while leaving profit-making units untouched. Citigroup is scheduled to report third-quarter earnings on October 13. In the second quarter, net income dropped 36% to $2.92 billion, surpassing analyst expectations. The upcoming restructuring plans and their impact on the bank's workforce will be closely watched by industry experts and investors alike.
