Citigroup Inc. (NYSE: C) has eliminated over 300 senior manager roles as part of CEO Jane Fraser’s ongoing efforts to simplify the Wall Street giant. The cuts affecting staff two levels below Fraser’s executive management team are the latest restructuring moves aimed at reducing costs and improving efficiency.
According to a person familiar with the matter, the cuts amount to roughly 10% of the workers at that level and were announced to affected employees on Monday. The move is part of Fraser’s broader plan to streamline Citigroup’s operations and eliminate redundancies following years of underperformance compared to its peers.
Citigroup’s restructuring efforts have included abandoning two core operating units and focusing on five key businesses: trading, banking, services, wealth management, and U.S. consumer offerings. The company has also been reducing its global footprint, exiting several markets and consolidating operations in others.
While the company has seen some improvement in its financial performance under Fraser’s leadership, it continues to face challenges, including a slowdown in its investment banking business and concerns about potential recessions in key markets. The job cuts are seen as an attempt to reduce costs further and improve profitability.
Citigroup’s decision to eliminate senior manager roles reflects its ongoing efforts to streamline operations and improve efficiency. The cuts come as the company faces several challenges, including a slowdown in its investment banking business and concerns about potential recessions in key markets.
The move is likely to be met with mixed reactions from employees. While some may be relieved to have clarity about their future, others may be concerned about the potential for further job cuts. The company said it would provide affected employees severance packages and outplacement services.
The job cuts are also likely to have a broader impact on the financial services industry, as other companies may follow suit to reduce costs. The move could also lead to increased competition for talent in the industry as experienced managers seek new employment opportunities.
Citigroup’s latest restructuring shows the company’s ongoing efforts to improve its financial performance and position itself for future growth. The job cuts are likely to significantly impact the company’s workforce and the broader financial services industry. Whether these moves will address Citigroup’s challenges and achieve its long-term objectives remains to be seen.