Reuters
Managers and consultants involved in Citigroup’s reorganization plan have discussed cutting at least 10% of jobs in the bank’s major businesses, CNBC reported.
The talks are early and may change in the next few weeks, CNBC said, citing people familiar with the discussions, without naming them.
Chief Executive Officer Jane Fraser announced in September a reorganization plan to simplify the structure of the bank. The plan is internally known as “Project Bora Bora,” CNBC said.
Citi, which has 240,000 employees, will determine the final number of layoffs in the coming weeks, according to CNBC. The plan involves the elimination of regional managers, co-heads and others with overlapping responsibilities, the report said.
According to CNBC, the bank declined to comment on details of the reorganization plan and said in a statement that it has “acknowledged the actions we’re taking to reorganize the firm involve some difficult, consequential decisions, but they’re the right steps to align our structure to our strategy and deliver the plan we shared at our 2022 Investor Day.”
Citigroup, the third-largest U.S. bank, said on Oct. 13 it will provide an update on organizational changes when it reports fourth-quarter results in January.
“When completed, we will have a simpler firm that can operate faster, better serve our clients and unlock value for our shareholders,” Fraser said in the latest earnings statement in reference to the changes.
Citigroup’s profit rose 2% in the third quarter to $3.5 billion. JPMorgan, the biggest U.S. bank, increased profit by 35% in the same period to $13.2 billion.
