Citigroup Embarks on New Round of Job Cuts Amid Ongoing Restructuring Efforts
In a bid to further streamline operations and reduce costs, Citigroup is undertaking a fresh wave of job cuts this week. This move is part of the lender’s sweeping reorganization strategy, spearheaded by Chief Executive Officer Jane Fraser, to boost earnings and address long-standing deficiencies in data governance and risk management.
Top-Level Departures
Managing directors from the wealth and technology units are among those leaving the firm, according to sources familiar with the matter. Additionally, the bank is axing staff from a team responsible for compiling data and analysis on its clients. Notably, Dallas-based co-chief information officer Shadman Zafar, a seasoned banking veteran, has opted to retire from his role.
A Normal Course of Business
Citigroup has downplayed the significance of these departures, stating that “leadership changes, retirements, and targeted staff changes are all normal course when running a business.” The lender has declined to provide further comment on the matter.
Restructuring Efforts Bear Fruit
The bank’s restructuring efforts, which began last year, have already yielded positive results. Citigroup’s stock surged 37% in 2024, outperforming the broader banking index and equity markets, as investors applauded Fraser’s transformation efforts. The lender also reported a strong fourth-quarter profit, driven by strength in trading and dealmaking.
Banamex Listing Plans
Citigroup still plans to list its Mexican unit, Banamex, on Mexico and U.S. stock exchanges this year. However, market conditions and regulatory hurdles may push the stock floatation to 2026, according to Fraser’s remarks to analysts. The bank completed the necessary separation of banking companies for the listing in December.
A New Chapter for Citigroup
As the lender continues to navigate its transformation journey, investors are likely to remain optimistic about its prospects. With a renewed focus on cost-cutting and operational efficiency, Citigroup appears poised to emerge stronger and more resilient in the years to come.
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