Citigroup has commenced a significant round of layoffs as part of CEO Jane Fraser’s corporate overhaul. The bank is under pressure to improve its performance, and the layoffs are a part of the effort to streamline operations and cut expenses. The full extent of the job cuts is still being determined, but it has been reported that at least 10% of workers in several businesses may be affected.
The layoffs will impact various levels of employees, including chiefs of staff, managing directors, and some lower-level employees. This move is part of a broader trend in the financial industry, with other big banks also making significant job cuts to reduce costs and navigate uncertain economic conditions.
🚨 LAYOFF ALERT – Nationwide 🇺🇸— What Layoff? (@WhatLayoff) November 15, 2023
Citigroup (@citi) is initiating layoffs in a corporate overhaul led by CEO Jane Fraser. The process, continuing into early next week, may involve cutting at least 10% of staff in various divisions under "Project Bora Bora." Affected employees… pic.twitter.com/CPomC0gLat
Employees affected by the cuts have been informed starting Wednesday, with new dismissals announced daily through early next week. The layoffs are part of a planned reorganization of Citigroup’s corporate structure, and the final changes are expected to be completed by next March. The bank has indicated that laid-off workers would be eligible to apply for other jobs within the company.
This development comes amid a wave of layoffs at major banks across the U.S., with Citigroup’s restructuring being a significant part of this trend. The discussions about job cuts have been ongoing as part of CEO Jane Fraser’s reorganization, known internally as “Project Bora Bora,” aimed at simplifying the bank and boosting its stock price.
The move is seen as a pivotal moment for CEO Jane Fraser as she faces investor skepticism about the bank’s performance targets outlined last year. The layoffs are expected to have a wide-ranging impact, affecting various businesses within Citigroup.
How many employees will be affected by the layoffs?
The process, continuing into early next week, may involve cutting at least 10% of staff in various divisions under “Project Bora Bora.” Affected employees could reapply for other roles within Citigroup, with severance pay offered where eligible. The full extent of the job cuts is still being determined.
While specific figures for Citigroup are unavailable, the search results indicate a widespread impact on the job market, with mentions of thousands of employees being affected in various companies. The scope of these layoffs varies, with reported numbers ranging from hundreds to thousands of employees across different sectors.
The prevailing trend of significant job cuts reflects the challenges faced by companies in navigating economic uncertainties and restructuring efforts to enhance efficiency. As Citigroup addresses its own restructuring challenges, it aligns with a broader narrative of organizations making strategic decisions to adapt to evolving market conditions.