NEW YORK, Nov 20 (Reuters) – Citigroup ( CN ) Chief Executive Officer Jane Fraser announced in a memo to employees on Monday that the company is making its next layer of management changes in a major restructuring.
“The steps we are taking to realign 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.
Specific leadership changes across businesses and functions will be communicated by executives on Monday first to their teams and then posted on an internal site, according to a memo to employees.
As part of the restructuring, Bank of America named Nacho Gutiérrez-Orrantia, one of its senior bankers in Europe, as the region’s new banking chief, according to people familiar with the situation.
In his new role as head of the Europe cluster, the Spanish banker will oversee Citi’s businesses in Europe.
The restructuring could include thousands of layoffs, according to a source familiar with the situation who was not authorized to speak publicly. In the memo, Fraser said final announcements on restructuring would happen in early 2024.
Preparations for Monday’s announcements were made verbally in meetings last week, according to another source familiar with the situation. Some employees may apply for other jobs in the bank, the source said.
The City announced plans to reduce management layers from 13 to eight as part of its biggest overhaul in decades. In the two top tiers of leadership, Citi cut 15% of operational roles and eliminated 60 teams, it said in its third-quarter earnings presentation.
Support staff in compliance and risk management and technical staff working in overlapping functions are at risk of layoffs, Reuters reported in September.
Reporting by Saeed Azhar, Isla Binny and Tatiana Batzer in New York; Additional reporting by Svea Herbst-Bayliss, Echo Wang and Andres Gonzalez; Editing by Lananh Nguyen, Lisa Shumaker and Nick Zieminski
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Tatiana Bautzer is a US banking correspondent at Reuters in New York. He previously covered banks in Brazil, covering deals, initial public offerings and bankruptcies of major global companies. He investigated corruption scandals in Brazilian conglomerates and business disputes between billionaires. Before joining Reuters in 2015, Bautzer worked for business magazines Exame and Istoe Dinheiro and newspapers Valor Economico and O Estado de S. Paulo. He was previously an international correspondent for Valor Economico in Washington, DC, covering multilateral institutions and trade. Bautzer holds a BA in Journalism and an MBA from the University of São Paulo. Contact: +646-2397968
Saeed Azhar is a Reuters financial journalist and part of the US Banking Group, which includes Wall Street’s biggest banks. He focuses on Goldman Sachs and Bank of America, and also writes about regional banks. Before moving to New York in July 2022, he led the finance team in the Middle East from Dubai and also worked in Singapore covering Southeast Asia finance. Contact: +1-3479086341