Citigroup To Cut Jobs Amid Ongoing Restructuring
Citigroup has flagged around 20 positions within its UK investment bank as potentially at risk as part of its continued efforts to restructure the Wall Street institution. Employees were informed of the intention to eliminate roles within the UK investment bank in March, including three managing directors and four directors, according to sources familiar with the matter. Additionally, three more MDs within capital markets functions are expected to be affected.
The bank has engaged in multiple consultation processes with its UK staff, addressing job cuts related to both CEO Jane Fraser's restructuring plans outlined in September and changing market conditions in investment banking. In October, Citigroup initiated a consultation process for approximately 250 roles in the UK as part of the initial phase of potential cuts under the strategic overhaul. Another round of consultations occurred in late November, although the exact number of positions under review was not disclosed.
Approximately 35 positions were eliminated from the UK-based investment banking team in September, primarily due to performance-related factors. The ongoing reorganisation, internally known as Project Bora Bora, is expected to be completed by the end of the first quarter. This initiative aims to streamline Citigroup's global operations into five core units, optimise management structures, and improve profitability, potentially resulting in significant job reductions. About 20,000 positions are projected to be phased out over the next two years.
Despite the restructuring, Citigroup has been actively recruiting for key positions. Vis Raghavan, former global head of investment banking at JPMorgan, was recently appointed as Citigroup's head of banking after the role remained vacant since the reorganisation announcement in September. Raghavan will oversee Citigroup's commercial, corporate, and investment banking divisions, areas identified by analysts as needing revitalisation.
