Citigroup CEO Jane Fraser announced that the company is undergoing a significant organizational restructuring in an effort to align its structure with its overarching strategy. The reorganization involves the elimination of several layers of management, reduction in functional roles, and a major overhaul to the firm’s committees. While specific leadership changes will be communicated by executives to their respective teams and later posted on an internal site, details of the restructuring are expected to be finalized at the beginning of 2024.
As part of the reshuffle, Nacho Gutiérrez-Orrantia, one of the bank’s most senior bankers in Europe, is set to be named the new head of banking in the region. In his new role as head of the Europe cluster, he will oversee Citigroup’s businesses in Europe. While the reorganization may lead to thousands of layoffs, some employees may have the opportunity to apply for other roles within the bank. The final details surrounding the overhaul are expected to be announced at the beginning of 2024, with verbal communications related to Monday’s announcements relayed to staff in meetings the previous week.
The reorganization marks Citigroup’s most significant overhaul in decades, with plans to reduce management layers from 13 to 8 and eliminate 60 committees. Functional roles have been reduced by 15%, and support staff in compliance, risk management, and technology are at risk of being laid off. The company is making difficult, consequential decisions in an effort to realign its structure with its strategic goals, according to CEO Jane Fraser. While the changes are expected to be challenging, Citigroup believes that they are necessary steps to ensure the firm’s continued success.
