Citigroup CEO Jane Fraser Bold Moves to Turn Around the Bank

Citigroup CEO Jane Fraser Bold Move

On Wednesday, September 13, 2023, Citigroup CEO Jane Fraser announced major management changes and employee cuts in an effort to simplify the Wall Street behemoth and increase its stock.

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Changes include removing a layer of management and eliminating regional leadership roles outside of North America. The heads of the bank’s five divisions will report directly to Fraser, and the bank is also looking for an external candidate to fill the banking head position.

Citigroup CEO Jane Fraser Bold Move: The improvements, according to Fraser, are necessary to “make Citi simpler, more efficient, and more competitive.” She stated that the bank is “not going to be universally popular within our bank,” but she believes it is vital to “create a more agile and customer-focused organization.”

The layoffs are projected to affect approximately 10,000 people, or approximately 3% of the bank’s workforce. The adjustments, according to Fraser, are “difficult but necessary” and would help the bank “become more efficient and competitive.”

Citigroup CEO Jane Fraser Bold Move: The adjustments occur as Citigroup faces increased competition from other banks and non-bank financial companies. Regulators have also put pressure on the bank to enhance its risk management processes.

Fraser will be Citigroup’s first female CEO, taking over in March 2021. She has stated her intention to transform the bank into a more “purpose-driven” business.

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Citigroup CEO Jane Fraser Bold Move: The broad management changes and staff layoffs are an important step forward in Fraser’s efforts to overhaul Citigroup. It remains to be seen whether the changes will be sufficient to improve the bank’s stock and performance.