Citigroup, one of the leading financial giants, is undergoing a significant restructuring, and it appears that support staff in compliance and risk management may bear the brunt of the changes.
Additionally, employees in technology roles with overlapping functions are also facing potential layoffs as part of the restructuring efforts.
Citigroup's management has already begun discussions with employees regarding the impending layoffs. Individual meetings to discuss departures have also commenced, reported Reuters
These developments come on the heels of the recent announcement by the third-largest U.S. bank, in which it declared its intention to streamline its management structure and reduce its workforce.
CEO Jane Fraser, describing it as the most significant reorganization in nearly two decades, aims to wield greater direct control over the bank's operations in a bid to bolster profits and its stock performance.
To quell concerns among its teams, executives overseeing revenue-generating divisions held meetings on Wednesday to elucidate the changes and reassure employees that the reorganization would lead to reduced bureaucracy and prioritize profit-centric activities.
Citigroup is still grappling with a consent order from regulators issued in 2020, which demanded that it rectify various "longstanding deficiencies" in its internal controls.
In a statement released on Wednesday, the bank stated, "Simplifying the organization will also advance the execution of Citi's transformation, the firm's top priority."
As part of the new structure, the heads of Citigroup's five major businesses will report directly to the CEO, while regional leadership roles outside North America will be eliminated.
Citigroup, with 240,000 employees as of the second quarter, surpasses its peers, Bank of America and Wells Fargo, in terms of headcount. The extent of the impending job cuts remains uncertain, but CEO Jane Fraser emphasized in a memo to staff that the departures are intended to enable producers and dealmakers to concentrate on client relationships and driving results.