Third Largest US Bank Citigroup In Layoff Talks After Management Restructure

Benzinga · 09/15/2023 13:11

Citigroup Inc (NYSE:C) is reportedly considering job cuts, with insider sources indicating that support personnel in compliance and risk management are particularly vulnerable. 

Moreover, there's potential for layoffs among technology staff members whose responsibilities overlap.

According to the sources, Citi's managers are currently in discussions with employees regarding potential layoffs. 

Individual meetings concerning departures have also commenced, Reuters noted, citing one of the sources. 

These discussions follow the recent announcement by the third-largest U.S. bank that it will streamline its management structure and reduce its workforce

Under the new structure, the heads of Citi's five major businesses will report directly to the CEO. The bank also intends to reduce regional leadership positions outside of North America.

An internal memo seen by Reuters indicates that Kristine Braden, CEO of Citibank Europe, is departing the company after 25 years as part of this organizational change.

The bank is still addressing a 2020 consent order from regulators, which demanded rectification of numerous "longstanding deficiencies" in its internal controls.

In recent years, Citigroup has made substantial investments in technology systems to enhance risk management and compliance, addressing the consent order. 

Nonetheless, the bank still employs numerous individuals with overlapping roles and redundant technology systems, as revealed by another source. 

Citing Moody's senior vice president Peter Nerby, responsible for rating Citi, Reuters noted, "They have been very careful and deliberate in what they do, especially because the risk and control transformation must work."

Price Action: C shares are up 0.32% at $43.00 during the premarket session on the last check Friday.