- Citigroup is embarking on a significant restructuring under CEO Jane Fraser's leadership, marking the largest overhaul in two decades for the Wall Street giant. The restructuring aims to address the company's prolonged decline in stock price and will lead to job cuts in Citigroup's back-office functions, although specific employee reduction targets have not been finalized. CEO Fraser acknowledges that the decisions made will be challenging and not universally popular within the bank but emphasizes their necessity.
- Citigroup will now operate with five primary business divisions and will eliminate the roles of the three regional chiefs responsible for overseeing operations across approximately 160 countries worldwide. Several of Fraser's senior deputies will assume new roles in this reorganization, and the company is actively seeking a head of banking, which includes oversight of the investment-banking unit.
Why it matters
Despite these changes, Citigroup's stock saw a 2.1% increase to $42.55 in New York, but it's worth noting that the stock has declined by roughly 40% since Fraser assumed the CEO position in early 2021. As part of the restructuring, Citigroup is discontinuing its two long-standing core operating units, with one focused on institutional clients and the other housing consumer offerings.