Citigroup CEO Jane Fraser Implements Major Reorganization
Citigroup CEO Jane Fraser is making significant changes to the company’s operations, which she considers the most consequential in nearly two decades. Fraser acknowledges that these changes may make some employees uncomfortable, but she believes they are necessary to improve the bank’s performance.
Striving to Boost Stock Performance
- Citigroup’s stock has fallen 7.6% since January and 40% over the past five years.
- Fraser aims to reverse this trend and enhance the bank’s stock performance.
Eliminating Divisions and Simplifying the Bank
The reorganization eliminates the previous structure that divided the company into two main divisions. Instead, the leaders of the five main business lines will report directly to Fraser. Additionally, Fraser has been shedding international consumer businesses as part of her efforts to simplify the bank.
Anticipated Job Cuts
While specific details were not provided, the reorganization is expected to result in job cuts. Citigroup currently employs approximately 240,000 people.
Fraser’s Vision for Citigroup
In a memo to employees, Fraser expressed her frustration about the bank being underestimated and expressed her confidence that the changes would position Citigroup as a winning bank. She stated that the reorganization is the most significant change the bank has made in almost 20 years.
Important Changes Highlighted
Fraser highlighted several important changes resulting from the reorganization:
- The elimination of 35 internal committees to streamline decision-making processes.
- The consolidation of non-North American businesses under Ernesto Torres Cantú, the bank’s head of international.
- The appointment of key leaders for each of the five main business lines.
Fraser’s Leadership Team
Fraser’s executive management team will consist of a total of 19 people, including the leaders of the five business lines. This structure aims to facilitate direct and efficient decision-making within the bank.
Looking Ahead
Fraser believes that these changes will position Citigroup for success and improve its standing in the financial industry. While some employees may be uncomfortable with the reorganization, Fraser is confident that the strongest performers will support the moves.
Sources:
- Citigroup CEO Jane Fraser Implements Major Reorganization
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