
Wall Street is witnessing a brutal end to 2023, and leading the charge in the bloodbath is none other than Citigroup.
In a shocking move that’s sending ripples through the financial world, Citigroup has started slashing jobs among its senior managers, signaling tough times ahead for the banking industry.
This isn’t just a small-scale adjustment.
We’re talking a colossal cut of around 10% of senior manager roles – approximately 300 top-tier professionals shown the door.
With a workforce of about 240,000, these cuts are a glaring red flag that even the banking behemoths aren’t immune to the economic turmoil gripping Wall Street.
“Citigroup’s bold move is a wake-up call to the entire industry. The bank is in full crisis mode, navigating through the storm of an uncertain economy, a dealmaking slump, and the Federal Reserve’s hammer of higher interest rates,” reports a financial analyst.
The buzzword on the street is that bonuses in the finance sector are going to take a hit, potentially flatlining or even nosediving this year.
Investment and commercial banking divisions are bracing for the impact, with pay incentives expected to be at their lowest in years.
It’s a grim picture for those banking on hefty bonuses to cushion their lifestyles.
But the real kicker?
CEO Jane Fraser’s drastic restructuring plan, which she unveiled in September, is the most significant shake-up in Citigroup’s operations in nearly two decades.
It’s a bold strategy aimed at reviving a lagging stock price and shedding layers of corporate fat.
Fraser, who took the helm of Citigroup after its stock price had already started to lag behind competitors, has seen the bank’s shares plummet by 31% during her tenure – a plunge almost double that of any other major bank.
Fraser’s new game plan involves splitting Citigroup into five separate units, directly under her watchful eye, and it’s clear she means business: “We’ll be saying goodbye to some very talented and hard-working colleagues,” she warned in September.
The CEO is also retreating from consumer banking globally, closing down operations in multiple international markets.
While Citigroup has made grand restructuring announcements in the past, insiders say Fraser’s approach is different.
She’s cutting out the middle management layer that used to report directly to the CEO, streamlining the giant’s corporate structure.
As the banking world braces for Citigroup CFO Mark Mason’s upcoming revelations about the bank’s restructuring at a New York banking conference next month, one thing is clear: The winds of change are howling through Wall Street, and no one is safe.
Stay tuned as we unravel the future of Citigroup and its impact on the global financial landscape.