Citigroup Shakeup: Citigroup, under the leadership of CEO Jane Fraser, is navigating a substantial reorganization, as outlined in memos to staff and insider sources. The executive management team communicated changes through emails and conference calls, emphasizing the necessity of aligning the firm’s structure with its overarching strategy.
In the U.S. personal banking division, notable shifts occurred with the merging of certain roles. Brad Wayman assumes the role of Chief Operating Officer, succeeding Chris McCullough, who is now tasked with leading mortgage and small business lending. Patrick Gallagher takes on the position of Head of Execution in the division. Dena Roten and Ryan Crowley will transition out of their roles. Additionally, Nacho Gutiérrez-Orrantia, one of Citi’s senior bankers in Europe, is expected to become the new head of banking in the region.
While the reorganization’s full extent may involve thousands of layoffs, details on specific names remain undisclosed. Executive managers engaged with their teams to explain the new divisional structure and potential role changes. Citigroup declined to comment on individual names, emphasizing the ongoing nature of the process.
CEO Jane Fraser conveyed that the final announcements regarding the overhaul would occur early next year. Preparations for these changes were verbally communicated in meetings the previous week, providing some staff the opportunity to explore alternative roles within the bank.
Citigroup’s overhaul involves a reduction in management layers from 13 to eight, marking a pivotal transformation. The top two layers witnessed a 15% reduction in functional roles, coupled with the elimination of 60 committees, reflecting the magnitude of the restructuring effort.
Reports from September hinted at potential layoffs in support staff roles, particularly in compliance, risk management, and overlapping technology functions. As Citigroup navigates this significant transformation, the financial industry keenly observes the impact of Fraser’s strategic realignment on the banking giant’s future trajectory.