Citigroup Prepares For Massive Layoffs Amidst Restructuring

The company intends to provide severance pay, adequate notice periods to those who are eligible, and opportunity to explore other job options


Citigroup executives are already reviewing employee names to determine who will continue in their existing positions, be moved or face layoffs as part of the company's largest reorganisation in decades by November.

"Some roles will be modified, new roles will be created, and roles that do not fit our new structure will be eliminated." The bank's chief human resources officer, Sara Wechter, stated in a memo, "This next layer of change is scheduled to be announced in November."

Employees whose positions are terminated might be able to explore other career opportunities, according to a global internal memo obtained by Reuters. According to the document, the corporation intends to provide severance pay and adequate notice periods to those who are eligible. The contents of this document were not made public until now.

When asked about the layoffs during a following employee town hall, bank management stated that the reductions will target certain job functions and geographies. They did not, however, reveal any specifics.

Citi CEO Jane Fraser highlighted major changes aimed at restructuring the bank's structure in the previous month, after the divestiture from non-core markets and a strategic concentration on profitable areas.

Citi has 2,40,000 employees as of the end of the second quarter. In comparison, Bank of America and Wells Fargo, the second and fourth-largest U.S. lenders, had around 2,16,000 and 2,34,000 workers, respectively.

Citigroup issued an announcement in June about its plans to enforce employee accountability in accordance with the norms of the hybrid work model. The bank launched examinations to ensure that workers met the requirement of working in the office three days each week.

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