Citigroup Braces for a Major Potential Restructuring
On Monday, Citigroup (C:US) is expected to reveal layoffs and changes in senior management, marking its most significant reorganization in decades, as stated by five sources familiar with the matter.
According to an insider not authorized to speak publicly, the impending job cuts may impact a substantial number of employees. It is anticipated that executives will communicate these changes, including senior management adjustments, through email.
Preparations for the upcoming announcements were reportedly conveyed verbally during meetings, according to another source with knowledge of the situation but lacking authorization to speak publicly. The source mentioned the possibility for affected staff to explore alternative roles within the bank.
Citigroup has refrained from providing any comments on the matter.
In the previous month, Citi unveiled its intentions to streamline management layers from 13 to 8, constituting a major restructuring effort. In its third-quarter earnings presentation, the bank reported a 15% reduction in functional roles within the top two leadership layers and the elimination of 60 committees.
There is heightened vulnerability for support staff in compliance and risk management, as well as technology personnel engaged in overlapping functions, who may face potential layoffs.
Despite the potential worrisome developments expected to unfold, the stock has been on the rise for the past month. On the political investments side, Congressman Ro Khanna was seen investing in the financial firm in the first half of October 2023. The representative executed two investment trades totaling $30,000.
Notably, since his recent trade, the stock is up nearly 9.5% in value.
