part of its broader efforts to reduce expenses. According to filings with the State Labor Department, approximately 239 employees from the primary banking subsidiary, 44 from its broker-dealer unit, and three from its technology arm are being laid off, as indicated in Worker Adjustment and Retraining Notification (WARN) notices filed recently.
This move comes in the wake of Citigroup’s announcement in early January, stating its intention to eliminate 20,000 positions “over the medium-term” as part of a reorganization initiative. The company aims to achieve cost savings ranging between $2 billion and $2.5 billion through these cuts.
Citigroup’s CEO Jane Fraser, who assumed the role three years ago, acknowledged that the fourth quarter was “very disappointing.” However, she highlighted the substantial progress made in simplifying Citi and executing the company’s strategy throughout 2023.
As part of this effort, Citigroup underwent restructuring, centering around five core, interconnected businesses. This restructuring aimed to align the organization with its strategy and enhance transparency into their performance. Additionally, the corporate reshuffling involved streamlining management layers to accelerate decision-making, enhance accountability, and reinforce focus on clients.
Under this new structure, the leaders of Citigroup’s five businesses now report directly to CEO Jane Fraser.