Citigroup CEO Jane Fraser conducted a conference call on Thursday with managing directors to discuss the recent extensive overhaul of the bank, revealing further leadership role eliminations this week, according to two anonymous sources familiar with the matter. Managers in markets, risk, and investment banking were individually informed about their termination as part of the ongoing reorganization, with some being notified that their positions would cease to exist as of February 1, as per two of the four sources. More details about the layoffs and severance payments are expected to be disclosed next week. Citigroup, when approached for comment, declined.
Last week, Citigroup announced plans to cut 20,000 jobs over the next two years following a challenging fourth quarter marked by significant one-off charges that led to a $1.8 billion loss. Although periodic updates have been provided regarding the job cuts, the precise timing and specifics of the organizational changes have been eagerly awaited by investors and employees. CEO Jane Fraser’s conference call on Thursday, addressing various aspects of the reorganization and outlining the broader plan for the 20,000 job cuts, had not been previously reported.
According to one source briefed on the call, Fraser discussed the headcount reduction during the current reorganization, with 5,000 positions set to be cut from the ongoing restructuring, an additional 5,000 from divestitures, and a further 10,000 from support functions such as technology and operations. This move to reduce roughly 8% of the staff makes Citigroup’s planned layoffs one of the most significant on Wall Street in recent years. The restructuring is a key element of Fraser’s strategy to streamline the bank, enhance returns, and boost its share price. Additionally, Citigroup is grappling with a 2020 consent order from regulators, requiring corrections to multiple “longstanding deficiencies” in its internal controls.
In response to these challenges, Citigroup appointed Jagdish Rao as its regulatory reporting and remediation head. Rao will report to Finance Chief Mark Mason and Chief Operating Officer Anand Selvakesari. This information was shared through an internal memo, the contents of which were disclosed to Reuters and subsequently confirmed by a Citigroup spokesperson. Jagdish Rao previously served as the chief administrative officer for the personal banking and wealth management business.
