The third-largest American bank and one of the biggest banking firms in the world, Citigroup has announced that they will be cutting off 300 manager roles in an attempt to reorganise the firm. Around 10% of the workforce from total managerial roles within the firm will lose their position. A statement published by the bank stated that it has made this decision while knowing that there could be difficult consequences; however, the decision was necessary to make sure the firm grows in the future.
The workforce reduction that is being done by the bank and is expected to carry on in the next year as well is a decision made by the CEO of Citigroup, Jane Fraser. She aims to eliminate layers of management and the co-head structure for a better, faster and seamless decision-making process. In a memo to her staff, Fraser said, “ I’m aware that we are asking a lot of our people. Building a winning bank requires a great deal of commitment, hard work and resilience from each one of us.”
According to Citigroup, it will continue laying offpeople next year too. They aim to announce the next wave of cuts at the start of the year and complete the cuts by the first quarter of next year. Many companies are laying off staff for a better and more efficient working process. India’s Byju’s recently laid off its employees along with many other companies. This, however, is the biggest restructuring within the bank in the last two decades. With the decision, the bank will focus on five key businesses: Trading, Banking, services, wealth management and US consumer offerings.