Citigroup recently announced its plan to cut 20,000 jobs over the next two years, after suffering a $1.8 billion loss in the fourth quarter of 2020. As part of this reorganization, CEO Jane Fraser held a conference call with managing directors to discuss the bank’s sweeping overhaul, where she addressed various topics, including the broader plan for job cuts, according to sources familiar with the situation. Managers in markets, risk, and investment banking were informed that they were being let go as part of the reorganization, with some being told that their positions would no longer exist as of Feb. 1. Citigroup has not yet provided details about the layoffs and severance payments, but they are expected to be announced next week.
The bank’s planned cut of roughly 8% of its staff is among the biggest layoffs on Wall Street in recent years. Fraser’s goal is to streamline the bank and boost its returns and share price. Headcount will be cut by 5,000 people in the current reorganization, while another 5,000 employees will be culled from selling businesses. A further 10,000 staff will be laid off from support functions like technology and operations.
Citigroup is also dealing with a 2020 consent order by regulators, which demands corrections to several “longstanding deficiencies” in its internal controls. To address this issue, the bank has appointed Jagdish Rao as its regulatory reporting and remediation head, reporting to Finance Chief Mark Mason and Chief Operating Officer Anand Selvakesari. Rao most recently served as chief administrative officer for the personal banking and wealth management business.