Citigroup CEO’s Stern Message To Employees: Deliver Change Or Face Consequences Amid Job Cut Talks

Citigroup’s CEO, Jane Fraser, has delivered a stern message to the company’s 240,000 employees, emphasizing the need for change or departure, as reported by the Financial Times. This comes shortly after she unveiled the largest restructuring initiative in the bank’s history, aiming to simplify the institution and bolster its stock performance. Taking the reins of the third-largest U.S. bank in 2021, Fraser faces the challenging task of reducing risk and increasing profitability.

According to FT, Fraser conducted a townhall meeting recently in which she urged employees to “Get on board. We have incredibly high ambitions for this bank, and the train is going to move fast.” She further added, “So lean in, help us win with clients, help us deliver the changes, or get off the train,” as reported by sources who were present.

While the exact number of job cuts remains undisclosed, Fraser’s restructuring plan has sent shockwaves through the organization. The report on the overhaul prompted the departure of senior executives, including Eduardo Cruz, the head of Citi’s Latin American investment banking operations, according to FT.

In a recent meeting with investors in New York, Fraser stated that the management has made “hard, consequential, tough decisions” that may not be universally popular within the bank. She expressed her willingness to face discomfort among some employees, asserting that it is the right course of action for shareholders, as reported by Reuters.

This sweeping reorganization is part of Fraser’s strategy to enhance profitability and streamline Citigroup since assuming leadership. Despite divestments and efforts to address regulatory issues, Citigroup’s stock price has lagged behind its peers. Additionally, the bank is still contending with a 2020 consent order from regulators, requiring corrections to several long-standing deficiencies in its internal controls.