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.
Also Read: Citigroup Sweeping Overhaul: Job Cuts and Leadership Shifts Mark Transformative Change
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.
Our Reader’s Queries
Is Citigroup too big to fail?
Citigroup Inc., The Goldman Sachs Group Inc., JPMorgan Chase & Co., and State Street Corp. are all companies that have been deemed “too big to fail.” This means that their failure could have catastrophic effects on the economy, and therefore, they are often bailed out by the government in times of crisis. These companies are some of the largest and most influential in the financial industry, and their stability is crucial to the overall health of the economy.
Is Citigroup laying off employees?
Citigroup has initiated layoffs as Wall Street prepares for a challenging end to 2023. The financial giant is taking measures to streamline its operations and cut costs amidst the uncertain economic climate. This move is in line with the industry-wide trend of downsizing and restructuring to maintain profitability. As the year draws to a close, the financial sector is bracing for a bumpy ride ahead.
Why is Citigroup stock so low?
Citi’s lackluster performance can be attributed to its inability to effectively manage its noninterest operating expenses. In the last four quarters, Citi’s overhead expenses accounted for a staggering 68% of its total revenue, which is significantly higher than its competitors Wells Fargo and JPMorgan, and even surpasses Bank of America’s 64%, as reported by FactSet. This inefficiency has resulted in a poor showing for Citi, highlighting the need for better expense control measures.
Why is Citibank restructuring?
In a major overhaul, the bank is streamlining its management structure from 13 layers down to just eight. The move is part of CEO Jane Fraser’s efforts to cut down on bureaucracy and boost profits, with the ultimate goal of improving the company’s stock performance. This marks a significant change for the bank, which has been lagging behind its competitors in recent years.