NEW YORK (Reuters) – Citigroup (CN) CEO Gene Fraser announced that the company is implementing the next layer of management changes in a sweeping reorganization, according to a memo to employees on Monday.
“The actions we are taking to reorganize the company involve some difficult and consequential decisions, but we believe they are the right steps to align our structure with our strategy,” Fraser said in a separate statement.
The memo to employees said specific leadership changes across companies and functions would be communicated by executives on Monday first to their teams and later posted on an internal website.
As part of the reshuffle, the US bank will appoint one of Europe’s top bankers, Nacho Gutierrez Orrantia, as its new head of banking in the region, according to people familiar with the situation.
In his new role as Group Head of Europe, the Spanish banker will look after Citi’s business in Europe.
The reorganization could include laying off thousands of workers, according to a source familiar with the situation who was not authorized to speak publicly. Final announcements regarding reform will occur at the beginning of 2024, Fraser said in the memo.
Preparations for Monday’s announcements were announced verbally at meetings last week, according to another source familiar with the situation. The source said that some employees may be able to apply for other positions at the bank.
City announced plans to cut management layers from 13 to eight as part of its biggest overhaul in decades. In the top two tiers of leadership, Citibank cut 15% of job roles and eliminated 60 committees, it said in its third-quarter earnings presentation.
Reuters reported in September that support staff in compliance and risk management, and technology staff who work cross-functionally, are at risk of being laid off.
(Reporting by Saeed Azhar, Isla Penny and Tatiana Butzer in New York – Preparing by Muhammad for the Arabic Bulletin – Preparing by Muhammad Al-Yamani for the Arabic Bulletin) (Additional reporting by Svea Herbst Baylis, Echo Wang and Andres Gonzalez) Editing by Lanh Nguyen, Lisa Shoemaker and Nick Ziminski
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