Citigroup, one of the world’s largest financial institutions, has announced a significant reorganization, signaling a series of changes that include layoffs and a management overhaul. Jane Fraser, Citigroup’s CEO, and her executive team outlined the restructuring plans in memos to staff and conference calls held on Monday.
Leadership Changes: Members of the executive management team sent emails to their subordinates detailing the impending changes, while leaders engaged in conference calls to discuss the restructuring. Jane Fraser emphasized that these changes, while difficult, are essential to align the firm’s structure with its strategic goals.
In Europe, Nacho Gutiérrez-Orrantia, one of Citigroup’s most senior bankers, is set to become the new head of banking in the region. Meanwhile, in the U.S. personal banking division, roles were merged, and Brad Wayman was appointed as the new chief operating officer. Chris McCullough will succeed Wayman as the head of mortgage and small business lending, and Patrick Gallagher was appointed head of execution in the division.
However, the restructuring comes with consequences, as two executives in the U.S. personal banking division, Dena Roten and Ryan Crowley, are expected to transition out of their roles.
Potential Layoffs: While Citigroup has not specified the exact number, the full reorganization is anticipated to involve thousands of layoffs, according to sources familiar with the situation. The bank’s executive managers held calls with their teams to explain the new structure in each division and discuss potential role changes.
Timeline and Communication: In a memo to employees, Jane Fraser mentioned that the final announcements related to the overhaul would take place early next year. Preparations for Monday’s announcements were communicated verbally in meetings the previous week, allowing some staff the opportunity to apply for other roles within the bank.
Citigroup had previously disclosed its plans to reduce management layers from 13 to eight, constituting its most extensive overhaul in decades. The restructuring initiative involved a 15 percent reduction in functional roles in the two top layers of leadership, along with the elimination of 60 committees, as detailed in the third-quarter earnings presentation.
Support staff in compliance, risk management, and technology roles working on overlapping functions are reportedly at risk of being laid off, adding further dimensions to the significant changes underway at Citigroup.
