Citigroup considering cutting 10% of workforce
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The news: Citigroup is considering deep job cuts in its major businesses as part of a sweeping reorganisation that was unveiled by CEO Jane Fraser in September.
The numbers: Managers and consultants at the third-largest US bank by assets have discussed job cuts of at least 10% of the workforce, CNBC reported earlier citing unnamed sources. The bank has a headcount of 240,000 people. Citigroup shares are trading 0.4% lower to USD42.07 each.
The context: Citigroup had warned of job cuts as part of the overhaul, but had said it will estimate the scale of layoffs and cost savings in the current quarter. The reorganisation is intended to give Fraser more direct control as she seeks to simplify the Wall Street giant and boost its stock price. The lender has hired Boston Consulting Group for the plan, according to CNBC. Fraser has battled to turn around the major US bank, which has been dogged by operational and regulatory issues in recent years. "We've acknowledged the actions we're taking to reorganize the firm involve some difficult, consequential decisions, but they're the right steps to align our structure to our strategy and deliver the plan we shared at our 2022 Investor Day," Citi told Reuters.
