“Citigroup CEO’s Firm Directive to Employees: Embrace Change or Depart”
Citigroup’s CEO, Jane Fraser, has issued a tough message to the bank’s 240,000 employees, urging them to embrace change or step aside. This directive follows the unveiling of Citigroup’s most extensive restructuring effort in 15 years as Fraser aims to revamp operations and boost stock performance.
Jane Fraser, CEO of Citigroup, has sent a resounding message to the bank’s vast workforce of 240,000 employees, calling on them to “deliver the change or get off the train,” as reported by the Financial Times. This directive comes on the heels of Fraser’s announcement of the most extensive restructuring effort undertaken by the bank in over a decade. The restructuring is geared toward streamlining Citigroup’s operations and bolstering its stock performance, while also providing Fraser with more direct control over the institution.
Since assuming the role of CEO of the third-largest U.S. bank in 2021, Jane Fraser has faced the formidable challenge of reducing risk and enhancing profitability. In a recent town hall meeting, she conveyed to employees her ambitious vision for the bank, saying, “…We have extremely lofty aspirations for our bank, and the train is set to accelerate swiftly…So lean in, help us win with clients, help us deliver the changes, or get off the train.”
While the exact number of job reductions resulting from Fraser’s restructuring plan remains undisclosed, the initiative has introduced an air of uncertainty among Citigroup’s workforce. Reports of the comprehensive overhaul have led to the departure of several senior executives, including Eduardo Cruz, who previously oversaw Citi’s Latin American investment banking operations.
This extensive reorganization marks another strategic move by Fraser to bolster profitability and streamline the bank’s operations during her tenure. Despite Citigroup’s efforts to divest certain business units and address regulatory challenges, its stock performance has lagged behind that of its competitors.
One persistent challenge for Citigroup is a consent order issued by regulators in 2020, mandating the bank to rectify numerous “persistent deficiencies” in its internal control systems. Fraser’s push for change and revitalization reflects her commitment to positioning Citigroup for a more competitive and successful future.
Sources By Agencies
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