Citigroup’s CEO, Jane Fraser, addressed ongoing organizational changes in a Thursday conference call with managing directors. She detailed the broader plan, aiming to cut 20,000 jobs over two years as part of a bank overhaul for efficiency and better returns. Last week’s announcement revealed the plan to cut 5,000 jobs in the ongoing reorganization, another 5,000 from selling businesses, and 10,000 from support functions like technology.
This week, the bank removed more leadership roles in markets, risk, and investment banking, informing managers that positions would cease as of February 1. Citigroup, committing to the layoffs despite a $1.8 billion Q4 loss, is among the most significant Wall Street layoffs recently, targeting an 8% staff reduction for improved overall returns.
Updates on layoffs, severance payments, and additional details are expected next week. Investors and employees closely monitor organizational changes, as Fraser’s call highlighted topics related to the reorganization. Citigroup addresses a 2020 consent order to correct “longstanding deficiencies” in internal controls alongside staff cuts.
Jagdish Rao is appointed Citigroup’s regulatory reporting and remediation head, reporting to finance chief Mark Mason and COO Anand Selvakesari. Rao, previously chief administrative officer for personal banking and wealth management, takes on this crucial role amid regulatory navigation. As reorganization continues, investors and employees await details on strategic changes. Explore 4xPip’s comprehensive resources for insights into the financial landscape and expert guidance. Connect with 4xPip’s experts for a seamless trading experience; contact customer support at [email protected] for inquiries and information.
Conclusion:
In conclusion, Citigroup’s strategic overhaul, led by CEO Jane Fraser, aims to enhance efficiency and financial performance through a significant staff reduction. As the bank navigates challenges, ongoing updates and insights are crucial for investors and employees alike.
FAQs:
Q: Why is Citigroup cutting jobs?
A: Citigroup is streamlining operations to boost overall returns and share prices, addressing longstanding deficiencies in internal controls.
Q: How many jobs will be cut in the ongoing reorganization?
A: The current phase targets 5,000 job cuts, with an additional 5,000 from selling businesses and 10,000 from support functions.
Q: When will the laid-off employees receive more details about severance payments?
A: Citigroup plans to announce further details, including severance payments and additional layoffs, in the upcoming week.
Q: Who is Jagdish Rao, and what role does he play in Citigroup’s changes?
A: Jagdish Rao is Citigroup’s regulatory reporting and remediation head, appointed to address regulatory requirements amid the ongoing reorganization.
