Citigroup Inc. will be getting rid of over 300 senior manager positions. This is being done as a part of Chief Executive Officer Jane Fraser's attempt to streamline the Wall Street behemoth.
The corporation began disclosing the job cuts on Monday. These will impact employees that are two tiers below Fraser's top management team, according to sources that spoke with Bloomberg.
These employees represent about 10 per cent of the employees at that level.
“Today we shared with our colleagues the next layer of changes across many of our businesses and functions as we continue to align Citi’s organizational structure with our new, simplified operating model,” Citigroup said in a statement, which didn’t disclose the number of lay offs involved.
“As we’ve acknowledged, the actions we’re taking to reorganize the firm involve some difficult, consequential decisions, but we believe they are the right steps to align our structure with our strategy and ensure we consistently deliver excellence to our clients,” the statement further read.
The bank has indicated that the employment reductions may extend globally into the upcoming year. Fraser's plan involves dismantling co-head structures and tiers of management to expedite decision-making within the bank. The number of workers who might be let go in the end has not been disclosed by the corporation.
“Building a winning bank requires a great deal of commitment, hard work and resilience from each of us. I’m fully aware we’re asking a lot of our people,” Jane Fraser said in a memo to staff.
According to the memo, the bank is still on pace to announce the following stages of change early in 2019 and to finish the last changes by the end of the first quarter.
Shares of the company slid by 0.22 per cent to $45.25 at yesterday's close in the New York Stock Exchange (NYSE).
Citigroup, is expected to undergo its largest restructuring in 20 years. The plan entails divesting the company of its two primary operational divisions and concentrating on five primary areas, including trading, banking, services, wealth management, and US consumer offerings.
Prior to the implementation of the reorganisation plan, Citigroup had already incurred around $650 million in severance costs from the elimination of 7,000 jobs during the first nine months of this year.
Nevertheless, the company's headcount of 240,000 employees has stayed constant over the last four quarters. In order to assist with the resolution of two consent orders the company received from regulators, the bank has hired more IT staff members and other personnel.