Citi says it is embarking on a major restructuring of its organization that eliminates a number of management layers.
The new structure, announced Wednesday (Sept. 13), elevates the leaders of the banking giant’s five businesses while also doing away with a number of positions, making Citi the latest big bank to undertake job cuts.
“I am determined that our bank will deliver to our full potential, and we’re making bold decisions to meet our commitments to all our stakeholders,” Citi CEO Jane Fraser said in a news release.
Speaking with investors Wednesday, Fraser was more frank.
“We have taken hard, consequential, tough decisions here,” she said in widely quoted remarks. “They are not going to be universally popular within our bank. It’s going to make some of our people very uncomfortable. I am absolutely fine with that … It is absolutely the right thing to do for our shareholders.”
It is not clear how many people will lose their jobs as the bank undertakes these changes. Citi says it will eliminate management layers in its personal banking & wealth management and institutional clients groups, along with regional layers in Asia Pacific, Europe, Middle East, Africa and Latin America.
“As Citi swiftly transitions to this new model, the firm is committed to retaining top talent and supporting employees who are leaving the company,” the release said.
The news comes as a number of other big banks look to reduce their staffing levels. Speaking to Reuters Tuesday (Sept. 12), Wells Fargo Chief Financial Officer Mike Santomassimo said that the bank could make further layoffs on top of the 40,000 jobs it has cut since 2020.
“I do think that there’s more to do, and you’ll see that through the headcount number,” Santomassimo told the media outlet.
At the end of the June quarter, Wells Fargo had 233,834 employees, down from 243,674 in the same quarter of 2022. The bank has also cut jobs in its mortgage business, while its commercial real estate business faces pressure, particularly in office loans, due to the work-from-home trend that has left many buildings vacant.
And on Monday (Sept. 11), Barclays Plc CEO C.S. Venkatakrishnan told CNBC his company plans to cut hundreds of positions, a move he says is in line with the larger financial sector.
Banks cut more than 15,000 jobs in the closing months of 2022, with Goldman Sachs, Morgan Stanley and Credit Suisse all announcing layoffs.
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