Layoffs Grow: Citigroup Says It Will Reduce Staff at UK Investment Bank; Names Directors & MDs

One of Wall Street’s most well-known companies, Citigroup, has targeted around 20 jobs at its investment bank in the United Kingdom for possible termination as it continues to strive for operational efficiency and increased profitability. The action is a component of the ongoing reorganization plans that CEO Jane Fraser is leading.

According to those acquainted with the situation who spoke with those Matters, Citigroup announced intentions to eliminate positions at its UK investment bank in a March notice to staff members. Notable targets included three managing directors and four directors. It is also expected that three further Managing Directors would be impacted in relation to the bank’s capital markets operations.

Layoffs Grow: Citigroup Says It Will Reduce Staff in the UK
The move comes after Citigroup had a number of consultation sessions with its employees in the United Kingdom. These sessions included job cutbacks related to the strategic reorganization that CEO Jane Fraser announced in September as well as changes in the investment banking industry.

According to Financial News, Citigroup began a consultation process in October for around 250 positions in the UK, which signaled the start of the possible layoffs associated with the strategic reorganization. A second round of meetings took place in late November, however, it was unknown how many jobs were being examined in detail.

Prior to last September, Citigroup removed around 35 employees from its investment banking unit in the UK, mostly for reasons connected to performance. The current reorganization, known internally as Project Bora Bora, is expected to be finished by the end of the first quarter with the goals of strengthening profitability, consolidating Citigroup’s worldwide activities into five main divisions, and streamlining management structures. An estimated 20,000 jobs are scheduled to be phased out over the following two years as a result of this redesign, which is expected to result in significant employment cutbacks.

Citigroup has been aggressively seeking new hires in addition to its reduction initiatives. Remarkably, Vis Raghavan, who was formerly the global head of investment banking at JPMorgan, was just named head of banking at Citigroup, taking up a position that had been unfilled since the announcement of the reorganization in September. One of Raghavan’s responsibilities is to supervise Citigroup’s investment, corporate, and commercial banking segments—all of which experts have identified as in need of revitalization.

The reorganization efforts carried out by Citigroup represent a wider pattern in the banking industry as companies manage changing market circumstances and seek operational and competitive enhancement strategies. While Citigroup and its competitors adjust to a quickly changing climate, the effects of these actions on the larger financial sector and the impacted workers are still being closely examined.

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