Citigroup considering at least 10% job cuts in major businesses - report

Citigroup's managers and consultants working on chief executive Jane Fraser's reorganisation have reportedly discussed job cuts of at least 10% in several major businesses.

Citi announced in September that it would strip out a layer of management and cut jobs in a sweeping reorganisation - known internally as ‘Project Bora Bora' - that would give Fraser more direct control as she seeks to simplify the bank and boost its stock price.

CNBC on Monday cited people with knowledge of the process as saying that the talks are early and numbers may shift in coming weeks.

It was understood that the ultimate number of layoffs will be determined in coming weeks as the massive project moves from management layers to rank-and-file workers. But some things are already clear, according to CNBC sources.

Executives will see cuts beyond 10% because of Fraser’s push to eliminate regional managers, co-heads and others with overlapping responsibilities, they said. For instance, chiefs of staff and chief administrative officers across Citigroup will be pruned this month, said one of the people with knowledge of the situation.

Operations staff who supported businesses that have been divested or reorganised were also understood to be at higher risk of layoffs.

In a statement to CNBC, Citi said: "As we’ve said previously, we are committed to delivering the full potential of the bank and meeting our commitments to our stakeholders.

"We’ve acknowledged the actions we’re taking to reorganise the firm involve some difficult, consequential decisions, but they’re the right steps to align our structure to our strategy and deliver the plan we shared at our 2022 Investor Day."