Citigroup outlines process for layoffs, reassignments in memo
Citigroup is planning to announce layoffs in November as the bank restructures its operations
Citigroup managers are reviewing staff rosters to determine by November who will stay in place, be reassigned or laid off during its biggest reorganization in decades, according to a global memo to staff on Wednesday seen by Reuters.
"Some roles will change, new roles may be created, and roles that do not fit our new structure will be eliminated," Sara Wechter, the bank's chief human resources officer, wrote in the memo. "This next layer of change is scheduled to be announced in November."
Employees whose jobs are eliminated may be eligible to apply for other positions, and the company will offer severance pay and notice periods where eligible, according to the message. The contents of the memo have not previously been reported.
Citi declined to comment on the global memo.
CITIGROUP REORGANIZES BUSINESS MODEL TO STREAMLINE OPERATIONS
Citigroup managers are reviewing staff rosters amid a restructuring with layoffs expected to be announced in November. ( Photographer Benjamin Girette/Bloomberg via Getty Images / Getty Images)
Last month, Citi CEO Jane Fraser announced a sweeping reorganization to simplify the bank's structure after divesting from non-core markets and focusing on profitable areas. Fraser's memo to staff did not announce an expected number of job cuts but said the departures would enable staff who generate revenue and dealmakers to focus their time on clients.
"We'll be saying goodbye to some very talented and hard-working colleagues," Fraser wrote at the time.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| C | CITIGROUP INC. | 69.28 | +0.99 | +1.46% |
Citi had 240,000 employees at the end of the second quarter. That compares with headcounts of about 216,000 at Bank of America and 234,000 at Wells Fargo, the second and fourth-largest U.S. lenders respectively.
Fraser has increasingly toughened the message to staff. "We don't have room for bystanders, we don't have room for people who want to stand on the sidelines," she said in a TV interview last week.
Citigroup is consulting with British regulatory authorities amid the restructuring. ( Photographer: David Paul Morris/Bloomberg via Getty Images / Getty Images)
Consultations in the UK
The bank is also beginning the consultations required in the UK after earlier warning employees about possible redundancies.
"We are updating colleagues on our next steps to align our structure with our strategy, and consulting with the London Consultation Forum about roles currently under review, some of these roles may change, while others will remain largely the same," the bank said in a statement Wednesday.
Citi hopes the reorganization will revive its share price, that has been lagging below half of book value for a while, and will give the CEO more direct control over its businesses.
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Reuters has reported that cuts will focus on support areas with overlapping teams such as compliance and risk management, and spare profit-making units.
Citigroup will report third quarter earnings on Oct. 13. In the second quarter, net income tumbled 36% to $2.92 billion, beating analyst expectations.