• By Kamal Kumar
  • Thu, 16 Nov 2023 05:43 PM (IST)
  • Source:JND
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Citigroup Layoffs:  Citigroup, the American multinational investment bank, reportedly started wide-ranging layoffs under the latest corporate overhaul plan put forth by the company's CEO Jane Fraser. The layoffs began on Wednesday, employees affected by the layoffs received notifications, and new dismissals will be disclosed daily until early next week, as reported by CNBC.

Those affected will include chiefs of staff, managing directors, and certain lower-level employees, as mentioned by the sources. The layoffs will extend to additional rank-and-file staff by February, according to their information. According to a report by Wion News, almost 10 per cent of the workforce will be axed under the new restructuring initiative which is reportedly being called 'Project Bora Bora'.

Fraser's restructuring plan, aimed at removing regional managers, co-heads, and employees with overlapping roles, is anticipated to lead to job cuts beyond the initial 10% in the executive ranks. Last month, Citigroup revealed intentions to reduce its management layers from 13 to eight, involving a 15% reduction in functional roles within the top two leadership layers and the elimination of 60 committees.

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According to Reuters, the bank has maintained a global headcount of 240,000 throughout the year, as stated in its latest quarterly supplement. Since taking the helm at Citigroup in 2021, CEO Jane Fraser has been working to enhance profitability, streamline operations, and address regulatory issues. Despite these efforts, Citigroup's stock performance has trailed behind that of its peers.

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On being asked about the layoffs, a spokesperson of the company refused to delve into any further information apart from this, "We’ve acknowledged the actions we’re taking to reorganize the firm involve some difficult, consequential decisions, but they’re the right steps to align our structure to our strategy and deliver the plan we shared at our 2022 Investor Day.”