Citigroup Begins Layoffs as Part of CEO Jane Fraser's Corporate Overhaul
November 16, 2023: Citigroup Inc. (NYSE: C), one of the world’s largest banks, has begun layoffs as part of CEO Jane Fraser’s corporate overhaul. The layoffs are expected to affect thousands of employees across the company’s global operations.
Fraser announced the layoffs in September 2023 as part of a plan to streamline operations and reduce costs. The CEO said the layoffs were necessary to make Citigroup “more competitive and agile” in a changing financial landscape.
The layoffs are expected to be most heavily felt in Citigroup’s investment banking and trading businesses. These areas have been hit hard by the recent downturn in the financial markets.
Citigroup has not yet released a specific number of job cuts. However, analysts estimate that the layoffs could affect as many as 20,000 employees.
The layoffs come when Citigroup faces increasing competition from other large banks, such as JPMorgan Chase & Co. (NYSE: JPM) and Bank of America Corp. (NYSE: BAC). These banks have successfully adapted to the changing financial landscape and have not had to resort to large-scale layoffs.
The layoffs are a significant setback for Fraser, who took over as CEO in February 2023. Fraser had promised to revitalize Citigroup and make it a more competitive force in the financial markets. However, the layoffs have raised concerns about her ability to execute her strategy.
The layoffs are also a blow to the morale of Citigroup’s employees. Many employees worry about their job security and wonder if they will be laid off next.
The layoffs are a reminder of Citigroup’s challenges as it tries to adapt to the changing financial landscape. The company must find ways to reduce costs and improve its efficiency to remain competitive in the long term.