Citigroup Undergoes Business Restructuring and Job Reductions Under CEO Jane Fraser Due to Stock Performance Challenges
Citigroup CEO Jane Fraser has announced a significant corporate reorganisation aimed at streamlining operations, reducing management layers, and accelerating decision-making processes. The restructuring involves dividing Citigroup into five main business lines directly reporting to Fraser, streamlining from the previous two main divisions focused on consumers and institutional clients. The five restructured business areas are U.S. personal banking, wealth management, investment and commercial banking, trading, and institutional services. The intention is to enhance accountability, eliminate unnecessary complexity, and capitalise on synergies among these business units. The previous corporate structure had been in place for two decades, leading to managerial tensions and hindered new initiatives.
While Citigroup is the third-largest U.S. bank by assets after JPMorgan Chase and Bank of America, it has a smaller domestic retail banking presence, contributing to struggles in the post-2008 financial crisis era. Fraser’s goal is to revitalise the firm, which has faced a persistent stock slump, declining approximately 40% in stock value since she assumed the role in March 2021. Citigroup has been trading at its lowest valuation among U.S. big bank peers. The restructuring will include job cuts, although the exact number has not been specified yet. This move is part of a broader effort to simplify operations, enhance accountability, and ultimately deliver on medium-term targets. The CEO expects the reorganisation to be complete by the first quarter of the following year, acknowledging the departure of valued colleagues due to these changes. Fraser has also tried to consolidate non-U.S. businesses under Ernesto Torres Cantú and has scaled back Citigroup’s overseas presence by exiting several markets, including Mexico. Despite these efforts, the company seeks to overcome challenges and improve its performance in the competitive banking industry.