Citigroup employees brace for layoffs, management overhaul – sources
Breaking News: Citigroup Announces Major Management Changes
2:42 PM UTC – November 20, 2023
NEW YORK (Reuters) – In a memo to staff on Monday, Citigroup (C.N) CEO Jane Fraser revealed that the company is undergoing a sweeping reorganization, including significant management changes.
“The actions we’re taking to reorganize the firm involve some difficult, consequential decisions, but we believe they are the right steps to align our structure with our strategy,” Fraser said in a separate statement.
Leadership changes across businesses and functions will be communicated by executives to their teams and later posted on an internal site, according to the memo.
Excitingly, one of Citigroup’s most senior bankers in Europe, Nacho Gutiérrez-Orrantia, will be appointed as the new head of banking in the region, as part of the reshuffle.
In his new role as head of the Europe cluster, Gutiérrez-Orrantia will oversee Citi’s businesses in Europe.
While the reorganization may involve thousands of layoffs, final announcements related to the overhaul will be made at the beginning of 2024, according to Fraser’s memo.
Preparations for these announcements were communicated verbally in meetings last week, and some staff may have the opportunity to apply for other roles at the bank, a source revealed.
Citi’s plans to reduce management layers and functional roles were previously announced, with a reduction of 15% in the top two layers of leadership and the elimination of 60 committees.
Support staff in compliance and risk management, as well as technology staff working on overlapping functions, are at risk of being laid off, as reported in September.
Reporting by Saeed Azhar, Isla Binnie and Tatiana Bautzer in New York; Additional reporting by Svea Herbst-Bayliss, Echo Wang and Andres Gonzalez; Editing by Lananh Nguyen, Lisa Shumaker and Nick Zieminski
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How will the new appointment of Nacho Gutiérrez-Orrantia as the head of banking in the region impact Citigroup’s presence and competitiveness in the European market?
Breaking News: Citigroup Announces Major Management Changes
2:42 PM UTC – November 20, 2023
NEW YORK (Reuters) – In a memo to staff on Monday, Citigroup (C.N) CEO Jane Fraser revealed that the company is undergoing a sweeping reorganization, including significant management changes.
“The actions we’re taking to reorganize the firm involve some difficult, consequential decisions, but we believe they are the right steps to align our structure with our strategy,” Fraser said in a separate statement.
These changes are expected to have a profound impact on the company’s operation and its future direction. Citigroup has been facing challenges in recent years, including regulatory scrutiny and a changing financial landscape. To address these challenges and stay competitive, the company has decided to undertake these major management changes.
The reorganization will see leadership changes across businesses and functions. Executives will communicate these changes to their teams and they will also be posted on an internal site, according to the memo. This transparent approach will ensure that all employees are informed and engaged in the transition process.
One exciting aspect of the reshuffle is the appointment of Nacho Gutiérrez-Orrantia as the new head of banking in the region. Gutiérrez-Orrantia, who currently holds a senior position in Europe, will bring his extensive experience and expertise to drive Citigroup’s banking operations in the region. This move is expected to further strengthen the company’s presence and competitiveness in the European market.
While reorganizations can be challenging, Citigroup’s management is confident that these changes will align the company’s structure with its strategy. By streamlining operations and enhancing leadership in key areas, Citigroup aims to improve efficiency, optimize performance, and navigate the evolving financial landscape effectively.
Citigroup’s decision to embark on this major reorganization underscores its commitment to adapt and thrive in the face of industry disruptions. The financial services sector is constantly evolving, and companies must be agile and proactive to remain successful. Citigroup’s management recognizes this reality and is taking decisive steps to position the company for continued growth and success.
As Citigroup moves forward with these management changes, stakeholders and employees will closely monitor the outcomes and the impact on the company’s performance. While there may be challenges and uncertainties in the short-term, the reorganization is a demonstration of the company’s commitment to long-term sustainability and its ability to adapt to changing market dynamics.
The announcement of Citigroup’s major management changes is a significant moment for the company and the financial industry as a whole. It signifies Citigroup’s determination to evolve, innovate, and position itself as a leader in the global financial services landscape. With the reorganization underway, all eyes will be on Citigroup to see how these changes shape its future and impact its stakeholders.
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