Citigroup Starts Restructuring to Focus on 5 Business Units

Citigroup has begun the next phase of its previously announced organizational changes. 

“Today we shared with our colleagues the next layer of changes across many of our businesses and functions as we continue to align Citi’s organizational structure with our new, simplified operating model,” the bank said in a Monday (Nov. 20) press release. “As we’ve acknowledged, the actions we’re taking to reorganize the firm involve some difficult, consequential decisions, but we believe they are the right steps to align our structure with our strategy and ensure we consistently deliver excellence to our clients.” 

Leadership changes will be made across businesses and functions, and the specific moves will be announced by leaders to their teams on Monday and then posted on an internal site, Reuters reported Monday, citing a memo to staff obtained by the media outlet. 

Reached by PYMNTS, a Citigroup spokesperson declined to provide or confirm any numbers.

One notable change in the reorganization is the appointment of senior banker Nacho Gutiérrez-Orrantia as the new head of banking in Europe, according to the report. In his new role, Gutiérrez-Orrantia, a Spanish banker, will oversee Citi’s businesses in Europe. 

While the exact number of layoffs is yet to be determined, the reorganization could result in thousands of job cuts, the report said. Citigroup plans to make final announcements related to the overhaul at the beginning of 2024. 

However, the bank also stated that some employees may have the opportunity to apply for other roles within the organization, per the report. 

Positions that may be eliminated during the restructuring include support staff in compliance, risk management and technology roles working on overlapping function, according to the report. 

It was reported Nov. 6 that managers and consultants at work on the restructuring have talked about cuts of at least 10% across a number of Citi’s major businesses. Those numbers could change, as CEO Jane Fraser is under increasing pressure to revitalize the banking giant as it lags behind its peers. 

Citi said in September that the restructuring of the organization would eliminate a number of management layers while retaining top talent. 

“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,” Fraser said at the time.