While Fraser has not disclosed the exact number of job reductions, her restructuring initiative created uncertainty among the workforce.
Citigroup’s CEO, Jane Fraser, recently issued a stern message to the company’s 240,000 employees, urging them to “deliver the change or get off the train,” a report by the Financial Times says. The directive comes shortly after Fraser unveiled the largest restructuring effort the bank has undergone in 15 years. The restructuring aims to streamline Citigroup’s operations and enhance its stock performance, giving Fraser more direct control over the company. Since assuming leadership of the third-largest U.S. bank in 2021, she has been tasked with the challenging mission of reducing risk and increasing profitability.
According to the Financial Times, in a recent town hall meeting, Fraser conveyed to the employees, “…We have extremely lofty aspirations for our bank, and the train is set to accelerate swiftly…So lean in, help us win with clients, help us deliver the changes, or get off the train.”
While Fraser has not disclosed the exact number of job reductions that the management intends to implement, her restructuring initiative has created a feeling of uncertainty among the workforce. Following reports about her comprehensive overhaul plan, several senior executives, including Eduardo Cruz, who leads Citi’s Latin American investment banking operations, have departed from the company, the Financial Times report says.
The extensive reorganisation represents another move in Fraser’s strategy to enhance profitability and streamline the bank’s operations since assuming leadership. Despite Citigroup’s efforts to divest businesses and address regulatory issues, its stock performance has trailed behind that of its competitors.
Citigroup continues to grapple with a consent order issued by regulators in 2020, requiring the bank to rectify numerous “persistent deficiencies” in its internal control systems.
