Citigroup Layoffs Employees Reach 7,000 Amid Ongoing Restructuring

Citigroup's layoffs have reached a staggering 7,000 employees, marking a significant milestone in the bank's ongoing restructuring efforts.

The massive layoffs are a result of Citigroup's efforts to streamline its operations and reduce costs. This is a common strategy in the banking industry, where companies often undergo restructuring to remain competitive.

Citigroup has been working to simplify its business model and reduce its global footprint, which has led to job losses. The bank has been focusing on its core businesses and divesting non-core assets.

The layoffs are a major blow to the employees who have lost their jobs, but they are also a necessary step for Citigroup to stay afloat in a rapidly changing financial landscape.

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Citigroup has begun laying off employees as part of CEO Jane Fraser's corporate overhaul.

The layoffs will affect chiefs of staff, managing directors, and some lower-level employees, with new dismissals announced daily through early next week.

Employees will be informed starting Wednesday of the cuts, which will spread to more rank-and-file staff by February.

The move tracks with a timeline set by Fraser in a September 13 memo, where she announced five new divisions whose heads report directly to her.

Fraser is under pressure to improve Citigroup, which has been mired in a stock slump due to ballooning headcount and expenses.

The full extent of job cuts is still being determined, but managers and consultants have discussed dismissals of at least 10% of workers in several businesses.

Employees who have lost their roles may be able to apply for other positions, and Citigroup will offer severance pay where eligible.

New Citigroup organizational charts have been created, and managers are now deciding which employees they will retain and who will be left out.

Citi has laid off more than 300 senior managers, making up roughly 10% of Citi's workers at that level.

The layoffs are part of a major restructuring Fraser announced in September, scrapping the bank's two-division structure and replacing it with five units whose leaders report directly to Fraser.

Here's a rough breakdown of the layoffs:

Citi's restructuring plan is a major overhaul of the company's organizational structure. The plan involves scrapping the two-division structure and replacing it with five units whose leaders report directly to CEO Jane Fraser.

The restructuring is aimed at eliminating layers of management such as regional managers, co-heads, and employees with overlapping responsibilities. This means that some employees will no longer have a role in the company.

Citi's CEO, Jane Fraser, has been transparent about the challenges the company is facing and the need for change. In a memo, she acknowledged that the actions taken to reorganize the firm involve difficult decisions, but she believes they are the right steps to align the company's structure with its strategy.

The restructuring is expected to be completed in phases, with the final changes expected in March 2024. The company will be informing employees about job cuts daily through early this week.

Here's a breakdown of the timeline for the restructuring:

The layoffs are expected to affect 10% of employees at some levels and units, with some employees facing cutbacks as early as November.

The job market impact of Citigroup's layoffs is a tough reality for many employees. Mark, one of the affected employees, described it as an "employer's market" in the banking industry.

The prevailing norm for retrenchment benefits is between two weeks to one month's salary per year of service, according to the Ministry of Manpower's website. This means that Mark received a compensation package that was in line with local recommendations.

Being laid off is never easy, and Mark felt that the company didn't explain the reason behind his role being made redundant. He believes that the reorganisation could have been successful, but unfortunately, it led to good people being deemed unnecessary.

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Citigroup has recently made another significant cut in its workforce, firing 2,000 employees in the third quarter.

This brings the total number of job cuts to 7,000 this year, with severance charges reaching $650 million.

The company's Chief Financial Officer, Mark Mason, attributed the reduced headcount to repositioning charges, which are a result of the company's reorganization efforts.

The reorganization is aimed at refocusing the firm on five key businesses, as announced last month.

Despite the significant job cuts, the firm's total headcount of 240,000 employees has remained constant over the past four quarters.

The company has added technology staffers and other employees to assist in its attempts to comply with a pair of consent orders from regulators.

Citigroup's spending increased by 6% to $13.5 billion in the third quarter, which is less than experts had predicted.

Here's a breakdown of the job cuts: