Citigroup plans to announce major lay-offs Monday

Citigroup plans to announce major lay-offs Monday.

Citigroup is set to initiate layoffs as part of CEO Jane Fraser's corporate restructuring efforts, according to sources familiar with the matter. Employees affected by the layoffs will be notified starting Wednesday, with further announcements expected daily through early next week. Those impacted will include chiefs of staff, managing directors, and some lower-level employees, with the cuts extending to more rank-and-file staff by February.

This move aligns with the timeline outlined by Fraser in a memo dated September 13. In that memo, Fraser introduced five new divisions, leading to the departure of several senior executives. The subsequent phase of disruptions was slated to be communicated and implemented by the end of November, with final changes expected by March 2024.

Fraser faces mounting pressure to revitalize Citigroup, which has grappled with a stock slump amid a surge in headcount and expenses in recent years. The CEO, who assumed her role in March 2021, is navigating a critical juncture as investors express skepticism about the bank's ability to achieve performance targets set last year.

Employees affected by the layoffs may have the option to apply for other positions, and Citigroup will provide eligible individuals with severance pay, as communicated by the company's human resources chief last month.

While the full scope of job cuts is still being determined, internal discussions under the project name "Project Bora Bora" have reportedly considered dismissals affecting at least 10% of workers in various business units, according to CNBC's report last week.

New organizational charts for Citigroup have been formulated, and managers are presently making decisions on staff retention, according to insider sources. Workers have reportedly sought clarification on the impending cuts through internal chat platforms.

In response to inquiries, a Citigroup spokeswoman reiterated the company's acknowledgment of the challenging decisions involved in the restructuring. The statement emphasized that these actions are deemed necessary to align the firm's structure with its strategy and deliver on the plan outlined at the 2022 Investor Day.