Embracing Change for a Resilient Future
Citigroup’s Strategic Workforce Evolution: As part of a strategic makeover led by CEO Jane Fraser, Citigroup initiates a significant workforce reduction, targeting a 10% cut to enhance stock performance and overall results.
Table of Contents
Restructuring: A Calculated Move
In a recent presentation linked to fourth-quarter earnings, Citigroup outlined plans to lay off approximately 20,000 employees over the “medium term,” signaling a commitment to a three- to five-year transformation period. The bank’s total workforce, excluding Mexican operations undergoing divestiture, stood at approximately 200,000 at the close of 2023.
CEO Fraser’s Vision: Navigating Past Challenges
CEO Jane Fraser’s sweeping restructuring plan for Citigroup, revealed in September, responds to the company’s historical struggle to control expenses post-2008 financial crisis. The bank currently holds the lowest value among the six largest U.S. banks.
Inside “Project Bora Bora”: A Closer Look
Project Bora Bora, an internal initiative, surfaced in November, discussing job cuts of 10% across major companies. Internally labeled as “Project Bora Bora,” Citigroup’s restructuring has seen several waves of layoffs, beginning with upper management. Another round is anticipated on January 22, as confirmed by an insider.
Industry Trends: Wells Fargo and Goldman Sachs Lead
In a year marked by job reductions, Wells Fargo and Goldman Sachs have been at the forefront. However, Citigroup maintained staffing levels at around 240,000 throughout 2023, including its Mexican operations.
Financial Implications: Balancing the Books
The restructuring project incurred a $780 million charge in the fourth quarter, with potential additional charges of $1 billion for severance and related expenses expected in 2024.
Innovative Strategies: Navigating Job Cuts
Citigroup suggests the 20,000 job cuts could be “slightly lower” by relying on internal resources instead of outsourcing functions. Yet, employees, anticipating additional cuts in the coming years, are proactively utilizing vacation time or mental health leave in the pursuit of new opportunities.
Conclusion: Citigroup’s Strategic Workforce Evolution
Citigroup’s workforce transformation, under CEO Jane Fraser’s visionary leadership, reflects a strategic response to industry challenges. As the bank navigates these changes, it emphasizes resilience, innovation, and a commitment to shaping a promising future.
