Citi wraps up reorg’s ‘major actions’

Citi this week is informing employees of the largest round of moves connected to its wide-scale reorganization, including reassignments and departures, Reuters reported, citing a memo from the bank’s CEO, Jane Fraser.

“These past months have not been easy,” Fraser wrote. “Far from it. The changes we've made are the biggest that most of us have experienced at Citi ..., putting us on the front foot and improving our competitiveness.”

The bank had long targeted March as the time frame to roll out the last stage of its reorg-related changes.

Citi has trimmed its headcount by 5,000 employees since September, Reuters reported. But that, in itself, is part of a broader effort to shrink its staff by 20,000 over the next two years.

The bank, in a Monday statement on its website, confirmed it had “concluded the major actions … that align Citi’s structure with our simplified operating model.”

In a note Monday, Wells Fargo analyst Mike Mayo said the transition “meets a major Citi milestone.”

“The organization simplification, which took 7 months to complete, should provide more evidence that Citi can meet its targets and do so methodically,” Mayo wrote.

Citi’s drawdown has been gradual, eliminating five layers of leadership deemed unnecessary and consolidating roles with overlapping responsibilities.

Early reports indicated the bank was looking to trim its headcount by 10% in several major units. But Fraser said in January the bank had cut 1,500 managerial roles, or 13% of its worldwide leaders.

In all, the reorganization is meant to save the bank $1 billion in annual costs.

“After having reset Citi’s strategy and undergone these consequential changes, we will continue to execute on our vision to be the preeminent banking partner for institutions with cross-border needs, a global leader in wealth and a valued personal bank in our home market and focus on our commitment to transform the company for the long term,” the bank said in its Monday statement.

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