Citigroup Nears Finish Line of Massive 20,000-Job Cuts
Citigroup is accelerating its most significant corporate restructuring in two decades, as CEO Jane Fraser’s “transformation plan” moves into its final execution phases.
The banking giant is aggressively advancing a global workforce reset designed to eliminate bureaucratic layers, reduce costs, and pivot the institution toward a more streamlined, digital-first operating model.
The Scale of Reset at Citigroup
Under the initiative, internally dubbed “Project Bora Bora,” Citigroup is on track to reduce its global headcount by approximately 20,000 roles by 2026.
This massive workforce reduction is a central pillar of Fraser’s strategy to lower the bank’s expense base to between $51 billion and $53 billion.
Analysts note that the reset is not merely a cost-cutting exercise but a fundamental dismantling of the firm’s complex regional silos.
Eliminating Management Layers
The transformation has already seen the removal of the bank’s two largest leadership layers.
By collapsing five regional divisions into five core business lines—Services, Markets, Banking, Wealth, and US Personal Banking—Citi has eliminated over 60 committees and significantly shortened the distance between the CEO and frontline operations.
This shift aims to accelerate decision-making and improve accountability, addressing long-standing criticisms regarding the bank’s operational inefficiency.
Citigroup Investment in Technology and Compliance
While thousands of administrative and middle-management roles are being phased out, Citigroup is simultaneously hiring in critical areas.
The bank is funneling billions into “transformation spending,” focusing on:
- Automation of Risk and Control: Transitioning from manual data entry to automated regulatory reporting systems.
- Modernizing Legacy Systems: Retiring outdated software platforms to reduce long-term maintenance costs.
- Data Integrity: Enhancing the bank’s data architecture to meet the stringent requirements of federal “consent orders” regarding risk management.
Financial Outlook and Market Reception
Despite the disruption, Citigroup’s leadership remains committed to achieving a Return on Tangible Common Equity (ROTCE) of 11%–12% in the medium term.
While the bank recorded significant one-time restructuring charges, investors have reacted cautiously but optimistically to the improved clarity in reporting.
Jane has emphasized that the “reset” is necessary to improve competitiveness.
She believes this move will help Citi better rival peers like JPMorgan Chase and Bank of America.
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