CEM REPORT, FINANCE | “Some roles will change, new roles may be created, and roles that do not fit our new structure will be eliminated,” Sara Wechter, Citi bank’s chief human resources officer, said in a memo this week.
According to Reuters, Citigroup (C.N) 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.
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 CEO Jane Fraser, last month, had announced sweeping changes to simplify the bank’s structure after divesting from non-core markets and focusing on profitable areas. The new, flatter structure elevates the leaders of Citi’s five businesses and eliminates management layers, which will speed up decision making, drive increased accountability and strengthen the focus on clients. Simplifying the organization will also advance the execution of Citi’s Transformation, the firm’s top priority.
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.
Citigroup Inc. or Citi is an American multinational investment bank and financial services corporation headquartered in New York City. The company was formed by the merger of banking giant Citicorp and financial conglomerate Travelers Group in 1998.
According to Reuters, 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 sent a tough message to the workforce. “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.
Citi has on-the-ground presence in 95 countries across the world including Nigeria and can issue currency in 144 countries.
organizational model that will fully align its management structure with its business strategy and simplify the bank.