Citigroup layoffs begin as part of CEO Jane Fraser’s review

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Jane Fraser, CEO of Citigroup Inc., in an interview for an episode of “The David Rubenstein Show: Peer Conversations” at the Washington Economic Club in Washington, DC, March 22, 2023.

Valerie Plesch Bloomberg | Getty Images

Citigroup layoffs will soon begin in CEO Jane Fraser’s corporate review, CNBC has learned.

Employees affected by the cuts will be notified starting Wednesday, with new layoffs announced each day early next week, according to people with knowledge of the situation.

The move follows a timeline set by Fraser in a September 13 memo. She announced five new departments whose heads report directly to her, resulting in the departure of a handful of senior officers. The next phase of disruption will be “communicated and implemented by the end of November,” with “final changes” made by the end of March 2024, Fraser said at the time.

Fraser is under pressure to improve Citigroup, which has been mired in a decline in stock as the number of heads and costs have increased in recent years. The CEO, who took over in March 2021, is at a very important time as she faces strong investor doubts that the bank can achieve the performance targets she defined last year.

Employees who lost their jobs as part of the cuts may be able to apply for other positions, and Citigroup will provide severance pay where appropriate, the bank’s human resources chief told reporters. – work last month.

The full extent of the job cuts is still being determined, but managers and consultants working on the project – known internally by the code name, “Project Bora Bora” – have discussed eliminating co- at least 10% of workers in several industries, CNBC recently reported. week.

Employees have taken to internal chat platforms with questions about the upcoming cuts, according to the people, who declined to be identified discussing personnel matters.

A Citigroup spokesman declined to comment Wednesday beyond a previous statement to CNBC:

“We have acknowledged that the actions we are taking to reorganize the company involve difficult decisions to make, but they are the right steps to align our structure to deliver on our strategy and the plan we shared at our 2022 Investor Day.”

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