Citigroup, the investment bank, has revealed plans to lay off 10 per cent of its workforce, aiming to improve the struggling bank’s financial performance and share price. This move, affecting approximately 20,000 employees in the medium term, is part of a broader effort to revitalize the bank’s standing.
Citigroup, based in New York, announced in connection with its fourth-quarter earnings report. The term “medium term” typically spans three to five years, although the exact duration remains unclear. The bank, which had around 200,000 employees at the end of the previous year (excluding ongoing operations in Mexico), aims to streamline its operations to enhance efficiency.
CEO Jane Fraser initiated a comprehensive review of Citigroup in September, signalling a strategic overhaul for the third-largest U.S. bank by assets. The institution has struggled to keep pace with competitors since the 2008 financial crisis. It has been hampered by persistent costs and holds the lowest valuation among the six largest U.S. banks.
Known internally as Project Bora Bora, the restructuring effort has been in the works for months. In November, CNBC reported discussions among managers and consultants involved in the project. During these discussions, they explored a potential 10 per cent reduction in workforce at various large companies, including Citigroup.
This workforce reduction represents a significant step for Citigroup as it seeks to reshape its operations and regain competitiveness in the financial industry. Additionally, the move aims to address longstanding challenges and position the bank for a more robust and sustainable future.
Citigroup Is Pulling out Of Retail Business in Mexico
Investment bank Citigroup is pulling out of Mexico after nearly a century of operations. This move suggests the lender is scaling back its global ambitions.
The group announced that it will withdraw from retail and medium-sized business banking in Mexico. This business is mainly conducted through its Banamex subsidiary.
Citigroup announced it would exit the business by selling subsidiaries or an initial public offering. The company will retain a private bank in Mexico and a unit serving institutional clients.
