On Thursday, the CEO of Citigroup, Jane Fraser, reportedly held a conference call with managing directors to discuss the bank’s recent changes as it has removed more leadership roles this week, reported the news agency Reuters. Managers in investment banking, markets, and risk were told in separate conversations that they were being let go as part of the reorganisation.
Certain managers were informed that their roles would be eliminated on February 1. Next week, more information regarding the layoffs and severance payments will be released, people familiar with the matter told Reuters.
Last week, Citigroup said it would eliminate 20,000 jobs over the next two years, a $1.8 billion loss caused by the fourth quarter marred by one-off charges.
Fraser talked about many aspects of the reorganisation and the larger plan behind the 20,000 job cuts over the next two years on the call with managing directors. The present reorganisation will result in a 5,000 reduction in headcount, and an additional 5,000 employees will be fired from selling firms. The bank will lay off a further 10,000 staff from its support functions like technology and operations, states the report.
The proposed 8 per cent employee count reduction at Citi is one of the largest layoffs on Wall Street in recent times. Fraser’s goal to streamline the bank and increase its returns and share price is the main reason behind these reorganisational reforms.
Citi Bank is also dealing with a 2020 consent order by regulators that demands the bank to correct several “longstanding deficiencies” in its internal controls.
According to an internal memo, Citi appointed Jagdish Rao as its head of regulatory reporting and remediation. Rao would report to Chief Operating Officer Anand Selvakesari and Finance Chief Mark Mason. Rao’s last role was as Chief Administrative Officer for the US’s third-largest bank’s personal banking and wealth management business.
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