NEW YORK: Citigroup CEO Jane Fraser and her executive management team announced on Monday the next layer of changes in a sweeping reorganization, according to memos to employees seen by Reuters and sources familiar with the situation.
Members of the executive management sent emails to subordinates outlining changes, according to one source familiar with the situation, who declined to be identified discussing personal matters. Leaders also held conferences to discuss the changes, another source said.
“The actions we are taking to reorganize the company involve some difficult, consequential decisions, but we believe they are the right steps to align our structure with our strategy,” Fraser said in a separate statement.
In the US personal banking division, a number of roles were merged and Brad Wayman was appointed as the new chief operating officer for the unit. The bank has appointed Chris McCullough to succeed Wayman as head of mortgage and small business lending. Patrick Gallagher has been appointed head of execution in the division. Two executives in the division, Dena Roten and Ryan Crowley, will transition out of their roles.
Citi will name one of its most senior bankers in Europe, Nacho Gutiérrez-Orrantia, as the new head of a bank in the region, according to people familiar with the situation.
In his new role as head of the European cluster, the Spanish banker will look after Citi’s businesses in Europe. Citi declined to comment on specific names.
The full reorganization could involve thousands of layoffs, according to a source familiar with the situation who was not authorized to speak publicly. On Monday, members of the executive management had calls with their teams to explain the new structure in each division and say which people might have new roles, the source added.
In a memo to employees, Fraser said the final announcements related to the review will be made early next year.
Preparations for Monday’s announcements were communicated verbally in meetings last week, according to another source familiar with the situation. Some employees may be able to apply for other roles at the bank, the source said.
Citi has announced plans to cut management layers from 13 to eight as part of its biggest overhaul in decades. In the top two layers of leadership, Citi reduced 15% of operational roles and eliminated 60 committees, it said in its third-quarter earnings presentation.
Support staff in compliance and risk management, and technology staff working on overlapping functions are at risk of being laid off, Reuters reported in September.
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Updated: 21 Nov 2023, 09:11 IST
(tagsTo Translate)Citigroup