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Citigroup restructures its top management and prepares for job cuts.

Citigroup intends to lay off 10% of its employees

Citigroup is undergoing significant restructuring, and employees working in compliance and risk management support roles are more likely to face job loss. Furthermore, there is a risk of vulnerability among technology personnel who perform overlapping functions.

According to sources, Citigroup is currently discussing potential job cuts with employees, with one-on-one meetings already underway. This follows the bank’s announcement to restructure its management and reduce its workforce, the most significant reorganization in nearly 20 years, all in an effort to increase profitability and stock value.

According to reports, on September 13, 2023, a meeting was held to explain the changes and reassure their teams that the restructuring would reduce bureaucracy and prioritise activities that contribute to profitability. The meeting was led by executives in charge of revenue-generating sectors.

Furthermore, the company is actively working to resolve a regulatory consent order that is due in 2020 and requires them to address a number of long-standing issues with its internal controls. The company stated on September 13, 2023, that restructuring their organization is a critical step in advancing Citigroup’s primary goal, which is to achieve their transformation objectives.

The CEOs of Citi’s five major businesses will report directly to the CEO under the newly reorganised structure. Furthermore, the bank intends to reduce leadership roles in regions other than North America.

In response to the consent order, Citigroup has made significant investments in technology systems in recent years to improve risk management and compliance. Nonetheless, according to another source, the company still has a sizable workforce with overlapping responsibilities and redundant technological infrastructure.