Citigroup has reportedly begun the layoff process after announcing a management overhaul on Wednesday (Sept. 13).
Support staff in compliance and risk management at the bank are expected to be the most affected, Reuters reported Friday (Sept. 15). Additionally, technology staff working on overlapping functions are also at risk of losing their jobs.
The talks regarding potential layoffs are already underway, with individual meetings about departures commencing as well, according to the report.
Executives responsible for revenue-producing businesses have held calls to explain the changes and reassure their teams that the reorganization will reduce bureaucracy and prioritize activities that generate profit, the report said.
Citigroup has a current workforce of 240,000 employees, per the report. Bank of America and Wells Fargo employ approximately 216,000 and 234,000 individuals, respectively.
While the exact extent of the job cuts remains uncertain, CEO Jane Fraser mentioned in a memo to staff that these departures would enable producers and dealmakers to focus their efforts on clients and driving results, according to the report.
When announcing the management overhaul on Wednesday, Fraser said: “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.”
Citigroup said it will eliminate management layers in its personal banking and wealth management and institutional client 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,” Citi said in a Wednesday press release.
Citigroup is still grappling with a consent order from regulators in 2020, which requires the bank to rectify numerous “longstanding deficiencies” in its internal controls, according to the Reuters report. Despite investing heavily in technology systems in recent years to bolster risk controls and compliance, the bank still employs a significant number of individuals with overlapping functions and redundant technology systems.
Under the new structure, the heads of Citigroup’s five major businesses will report directly to the CEO, the report said. The bank will also eliminate regional leadership roles outside of North America.