Citigroup
What Happened: The bank has been eliminating more leadership roles. Managers in markets, risk, and investment banking were told they were being let go as part of the reorganization, with some positions ceasing to exist from Feb. 1, Reuters reported.
Citigroup announced last week that it plans to cut 20,000 jobs over the next two years following a $1.8 billion loss in the fourth quarter. The timing and details of these cuts are being closely watched by investors and workers alike.
During the call, Fraser addressed the broader plan for the job cuts. The current reorganization will result in a reduction of 5,000 employees, with another 5,000 being culled from selling businesses. An additional 10,000 staff will be laid off from support functions such as technology and operations.
This planned staff cut, representing about 8% of Citigroup's workforce, is one of the largest layoffs on Wall Street in recent years. It is a central part of Fraser's strategy to streamline the bank and boost its returns and share price.
An email sent by Benzinga to Citigroup seeking comment didn't elicit any response till the time of publishing this story.
Why It Matters: The recent layoffs and restructuring at Citigroup come in the wake of a disappointing Q4, which led to a $1.8 billion loss and the announcement of 20,000 job cuts over the next two years. The bank's planned cut of roughly 8% of its staff is among the biggest layoffs on Wall Street in recent years. The overhaul is a key part of Fraser's efforts to streamline the bank and boost its returns and share price.
This came after the U.S. banking sector's earnings season started on a weak note, with the market showing a negative reaction to the results reported by major banks, including Citigroup. This led to a negative reaction on Wall Street for the U.S. banking sector, marking its worst streak since early November 2023.
Meanwhile, other major banks are also making strategic moves. Goldman Sachs Group, Inc.
