2024-01-21 12:03:04
Citigroup CEO Jane Fraser held a conference call with managing directors to discuss an overhaul of the bank, according to two sources familiar with the situation, as it eliminated more leadership roles this week, according to Archyde.com.
In separate conversations, managers in markets, risk and investment banking were told they would be laid off as part of the reorganization, according to the sources and two others familiar with the process who declined to be identified to discuss personnel matters.
Two of the four sources said some managers have been told their positions will no longer exist as of February 1 and that more details about the layoffs and severance payments will be announced next week.
The bank said last week that it would cut 20,000 jobs over the next two years, after a fourth quarter that was marred by a one-time charge that led to a loss of $1.8 billion.
While Citi has provided periodic updates on the cuts, investors and employees are closely monitoring the timing and details around the regulatory changes. Fraser’s call on Thursday had not been previously reported.
During the call with managing directors, Fraser discussed various topics related to the reorganization and addressed the broader plan to cut 20,000 jobs over the next two years, according to one of the sources, who was briefed on the call.
The source quoted Fraser as saying that the number of employees will be reduced by 5,000 people in the current reorganization process, while another 5,000 employees will be excluded from the sale of the companies.
The source added that another 10,000 employees will be laid off from support functions such as technology and operations.
Citi’s planned reduction of nearly 8% of its staff is among the largest layoffs on Wall Street in recent years. The overhaul is key to Fraser’s efforts to simplify the bank and boost its returns and share price.
The third-largest U.S. bank is also dealing with a 2020 consent order from regulators demanding corrections to several “long-standing deficiencies” in its internal controls.
Citi has appointed Jagdish Rao as head of regulatory reporting and processing, reporting to CFO Mark Mason and Chief Operating Officer Anand Selvakesari, according to an internal memo whose contents were shared with Archyde.com and confirmed by a Citi spokesperson.
Rao most recently served as Chief Administrative Officer of Personal Banking and Wealth Management.
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