Citigroup Inc. remains on track to carry out its restructuring plan starting this month and extending until March, a spokesperson for the bank said Thursday.
Citigroup
C,
+0.93%
declined to comment on a report by CNBC-TV that workers were being informed of job cuts as early as Wednesday. Citing people with knowledge of the company, the report said new dismissals will be announced every day over the next few days.
A Citigroup spokesperson on Thursday referred to an internal memo from September that said: “The next layer of changes to further align teams with our new model will be communicated and implemented by the end of November, and final changes will be made by the end of the first quarter of 2024.”
On Oct. 13, Citigroup Chief Executive Jane Fraser told Wall Street analysts that she would provide more details early next year on her September announcement about simplifying the bank’s functions to improve efficiency.
“When we speak in January, Mark and I will be in a position to update you on the financial and other metrics, showing the impact of the simplification amongst other details,” Fraser said, referring to Chief Financial Officer Mark Mason. “Now, while expenses [are] not the primary driver of the organizational changes, they will help us start bending the expense curve in the fourth quarter of next year. And at the end of the work, we will have a simpler firm that can operate faster, better serve our clients and unlock value for our shareholders.”
On Nov. 6, CNBC reported that as many as 10% of employees in some business units will be let go as part what the bank is calling Project Bora Bora, and that layoffs will begin soon.
Citigroup disclosed 238,000 employees as of Sept. 30, down 2,000 from June 30.
Citigroup’s stock has fallen by 1.3% in 2023, compared with a gain of 17.4% by the S&P 500
SPX.
Read the full article here