Citigroup Chief Executive Jane Fraser held a conference call Thursday with managing directors to announce a sweeping overhaul of the bank that will cut more leadership roles starting this week, two people familiar with the situation said. We talked about it.
Managers in the markets, risk and investment banking divisions will be let go as part of the reorganization, according to the people and two other people familiar with the process who asked not to be named discussing personnel issues, in separate conversations. He was informed of this.
Two of the four people familiar with the matter said some managers were told their positions would be eliminated as of February 1. It added that details of the layoffs and severance packages would be announced next week.
Citigroup declined to comment.
The bank last week announced it would cut 20,000 jobs over the next two years after suffering a $1.8 billion loss in the fourth quarter on one-time charges.
Citi has provided regular updates on layoffs, but investors and employees are keeping an eye on the timing and details of the organizational changes. Fraser's call on Thursday had not previously been reported.
Mr. Fraser discussed a range of organizational restructuring topics during the call with executive directors, including broader plans to cut 20,000 jobs over the next two years, one of the people briefed on the call said. He also mentioned plans.
The reorganization will result in 5,000 headcount cuts and an additional 5,000 employees will be eliminated from the sale, Fraser said, citing sources.
An additional 10,000 staff will be laid off from support functions such as technology and operations, the people added.
Citi's planned layoffs of about 8% of its workforce are among the largest cuts on Wall Street in recent years. The review is central to Fraser's efforts to streamline the bank and boost its earnings and share price.
