Citigroup has reportedly taken some of the early steps in its previously announced reorganization.
The bank is currently reviewing staff rosters to determine who will be retained, reassigned or laid off in November, Reuters reported Wednesday (Oct. 4), citing a global memo to staff it has seen.
Reached by PYMNTS, a Citigroup spokesperson declined to comment on the report.
In the memo, Citigroup Chief Human Resources Officer Sara Wechter said: “Some roles will change, new roles may be created, and roles that do not fit our new structure will be eliminated,” according to the report.
Employees whose positions are eliminated may have the opportunity to apply for other positions within the company, and the bank will provide severance pay and notice periods where eligible, the report said.
In September, Citigroup unveiled a plan for the bank’s most significant reorganization in decades, aiming to streamline the bank’s structure, focus on profitable areas and allow revenue-generating staff and dealmakers to focus on clients, per the report.
When announcing the reorganization plan on Sept. 13, Citigroup CEO Jane Fraser said: “I am determined that our bank will deliver to our full potential, and we’re making bold decisions to meet our commitments to all our stakeholders.”
Citi said it will eliminate management layers in its personal banking & wealth management and institutional clients groups, along with regional layers in Asia Pacific, Europe, Middle East, Africa and Latin America.
The bank did not specify the expected number of job cuts. With 240,000 employees at the end of the second quarter, Citigroup surpasses Bank of America and Wells Fargo in terms of headcount, according to the Reuters report.
The reorganization also aims to boost Citigroup’s share price, which has been persistently below half of its book value, the report said. The bank aims to provide the CEO with more direct control over its businesses and streamline support areas with overlapping teams. Job cuts are likely to concentrate on areas such as compliance and risk management, while profit-making units may be spared.
In another memo, Citigroup said it has initiated consultations in the U.K. to align its structure with its strategy, per the report. Some roles may undergo changes, while others are anticipated to remain largely unchanged.
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