Citi restructures executive board and plans layoffs

The financial institution seeks to simplify the structure to regain investor confidence

Bloomberg


September 13, 2023 at 2:34 pm – Updated 56 minutes ago

Citigroup is bracing for a wave of layoffs as CEO Jane Fraser restructures the Wall Street giant to operate from five core businesses.

The company will no longer have three regional presidents overseeing its business in about 160 countries around the world, according to a statement issued on Wednesday (13). At least four of Fraser’s top representatives are getting new roles in the move, and the company is searching for a head of banking, which includes overseeing the investment banking unit.

The actions will lead to a series of job cuts, though the company has not yet anticipated how many employees will be affected, according to people familiar with the matter who heard in the report and who asked to remain anonymous discussing personal information.

“These decisions were not made lightly,” Fraser said in a memo to staff seen by Bloomberg News. “We will say goodbye to some talented and hard-working colleagues who have made important contributions to our company.”

The company will separate its two main operating units into five main operating units, including the services division led by Shahmir Khaliq, the commercial division led by Andy Morton and the US personal banking division under Gonzalo Lucchetti. Peter Babbage will lead the organization’s banking division on an interim basis, while Andy Sage is expected to join the company later this month from Bank of America to lead Citigroup’s wealth management.

The five executives will be part of Fraser’s executive management team, which will expand to include 19 people. This includes Ernesto Torres Cantu as Head of International, while Sunil Garg continues to lead North America.

Fraser has sought to streamline Citigroup’s sprawling global operations, which employ 240,000 people. But so far, efforts have failed to convince investors. Shares are still down about 40% since the executive took over the bank in early 2021, more than double the decline of any major U.S. competitor over that period.

“I know many of you share my frustration that we are undervalued as a bank,” Fraser said in the note. “These changes in the way we operate will accelerate our work towards becoming the winning bank we all know Citi can be.”

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