Citigroup employees brace for layoffs, management overhaul – sources

The logo of Citibank is seen on the trading floor of the New York Stock Exchange (NYSE) in Manhattan, New York City

The logo of Citibank is seen on the trading floor of the New York Stock Exchange (NYSE) in Manhattan, New York City, U.S., August 3, 2021. REUTERS/Andrew Kelly Acquires License Rights

NEW YORK, Nov 20 (Reuters) – Citigroup ( CN ) CEO Jane Fraser announced the company was implementing its next layer of management changes in a sweeping reorganization, according to a memo to staff on Monday.

“The actions we are 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,” Fraser said in a separate statement.

Specific leadership changes across businesses and functions will be communicated by executives on Monday first to their teams and later posted on an internal website, the memo to employees said.

As part of the reshuffle, the U.S. bank will name one of its most senior bankers in Europe, Nacho Gutiérrez-Orrantia, new head of banking in the region, according to people familiar with the situation.

In his new role as head of the Europe cluster, the Spanish banker will look after Citi’s business in Europe.

The reorganization could involve thousands of layoffs, according to a source familiar with the situation who was not authorized to speak publicly. In the memo, Fraser said the final announcements related to the overhaul will be made in early 2024.

Preparations for Monday’s announcements were communicated verbally in meetings last week, according to another source familiar with the situation. Some employees may seek other roles at the bank, the source said.

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Citi announced plans to cut management layers from 13 to eight as part of its biggest overhaul in decades. In the top two layers of management, Citi reduced 15% of functional roles and eliminated 60 committees, it said in its third-quarter earnings presentation.

Support staff in compliance and risk management and technology staff working in overlapping functions are at risk of layoffs, Reuters reported in September.

Reporting by Saeed Azhar, Isla Binnie and Tatiana Bautzer in New York; Additional reporting by Svea Herbst-Bayliss, Echo Wang and Andres Gonzalez; Editing by Lananh Nguyen, Lisa Shumaker and Nick Zieminski

Our standards: Thomson Reuters Trust Principles.

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Tatiana Bautzer is US banking correspondent at Reuters in New York. She has previously covered banks in Brazil, news on deals from large global companies, IPOs and bankruptcies. She has also delved into corruption scandals in Brazilian conglomerates and business disputes between billionaires. Before joining Reuters in 2015, Bautzer worked for the business magazines Exame and Istoe Dinheiro and the newspapers Valor Economico and O Estado de S. Paulo. She previously served as international correspondent for Valor Economico in Washington, DC, covering multilateral institutions and trade. Bautzer holds a BA in Journalism and an MBA from the University of Sao Paulo. Contact: +646-2397968

Saeed Azhar is a Reuters financial journalist and part of the US banking team covering Wall Street’s biggest banks. He focuses on Goldman Sachs and Bank of America and also writes about regional banks. Before moving to New York in July 2022, he led the Middle East economics team from Dubai and also worked in Singapore covering the Southeast Asian economy. Contact: +1-3479086341

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