- By Vaamanaa Sethi
- Tue, 26 Sep 2023 06:19 PM (IST)
- Source:JND
Citigroup CEO Jane Fraser has issued a strong directive to the company's 240,000 employees, emphasizing the need to "effect change or step away from the journey”, according to the Financial Times (FT).
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This statement follows her recent announcement of the most extensive restructuring in the bank's history in the past 15 years. These changes grant Ms. Fraser greater direct authority as she endeavors to streamline the operations of the Wall Street behemoth and enhance its stock performance.
Assuming leadership of the third-largest bank in the United States in 2021, she faces the formidable challenge of reducing risk and increasing profitability.
"Get on board. We have incredibly high ambitions for this bank and the train, it's gonna move fast,” Fraser was quoted as saying by FT, in a town hall meeting last week with employees.
She further added, “So lean in, help us win with clients, help us deliver the changes, or get off the train.” However, the number of employees affected in the recent round of job cuts is still unknown.
Earlier this month, Fraser told investors that the company has taken some "hard, consequential, tough decisions". "They are not going to be universally popular within our bank. It's going to make some of our people very uncomfortable. I am absolutely fine with that ... It is absolutely the right thing to do for our shareholders," Reuters quoted her as saying at the meeting.
The comprehensive reorganization marks another milestone in Ms. Fraser's efforts to enhance profitability and streamline the bank's operations since assuming leadership. Despite Citi's divestment of businesses and ongoing efforts to address regulatory issues, its stock price has trailed behind that of its peers.
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Furthermore, the bank continues to grapple with a regulatory consent order dating back to 2020, which requires remedying various "longstanding deficiencies" within its internal control systems.