Daily Management Review

Citigroup Letter Describes Layoff And Reassignment Procedures


Citigroup Letter Describes Layoff And Reassignment Procedures
According to a global message to staff, management at Citigroup are examining staff rosters to decide by November who will remain in place, be moved, or be let go during the company's biggest reorganisation in decades.
"Some roles will change, new roles may be created, and roles that do not fit our new structure will be eliminated," Sara Wechter, the bank's chief human resources officer, wrote in the memo. "This next layer of change is scheduled to be announced in November."
The corporation will offer severance pay and notice periods where appropriate, and employees whose employment are removed may be qualified to apply for new positions. The memo's contents were not previously disclosed.
Citi provided no comments on the global memo.
On Wednesday, Citigroup also called a meeting of its managing directors, according to two people with knowledge of the situation. According to one of the persons, executives discussed the steps detailed in Wechter's memo.
The source claimed that the meeting, which lasted only 30 minutes, gave bankers 15 minutes' notice.
Additionally, Citigroup did not comment on the meeting of the managing directors.
After exiting non-core regions and concentrating on profitable areas, Citi CEO Jane Fraser launched a broad reorganisation last month with the goal of streamlining the bank's organisational structure. Although Fraser's email to staff did not specify the anticipated number of job losses, it did state that the departures will free up staff members who negotiate deals and earn money to devote more of their time to clients.
"We'll be saying goodbye to some very talented and hard-working colleagues," Fraser wrote at the time.
At the end of the second quarter, Citi had 240,000 employees. The second and fourth largest U.S. lenders, respectively, with headcounts of around 216,000 at Bank of America and 234,000 at Wells Fargo.
Fraser has become more direct with his advice to the personnel. She stated last week in a TV interview that "we don't have room for bystanders, we don't have room for people who want to stand on the sidelines."
Following an earlier warning to staff about potential layoffs, the bank is also starting the necessary discussions in the UK.
"We are updating colleagues on our next steps to align our structure with our strategy, and consulting with the London Consultation Forum about roles currently under review, some of these roles may change, while others will remain largely the same," the bank said in a statement Wednesday.
Citi is hoping that the changes will boost its share price, which has fallen behind peers, and give the CEO more direct control over the company's operations.
According to reports, changes would be made to spare profit-making operations and support sectors with overlapping staff, such compliance and risk management.
On October 13, Citigroup will release its third quarter earnings. Net income decreased 36% to $2.92 billion in the second quarter, exceeding analyst predictions.