Citi CEO Jane Fraser warns of more job cuts, looks to 'raise the bar'

Citi CEO Jane Fraser is urging Citigroup Inc. to abandon its backward culture. in a snarky memo sent to Wall Street bank staff. The CEO informed her 226,000 employees that the "bar is raised" and hinted at additional layoffs this year.

This is being seen as part of Chief Executive Jane Fraser's push to reduce expenses and boost profits at the Wall Street bank, Citigroup Inc. plans to eliminate roughly 1,000 positions this week.

According to persons familiar with the situation who requested not to be identified discussing non-public information, the corporation, which employed 227,000 people at the end of September, is reducing its workforce as part of a plan outlined two years ago to cut 20,000 jobs by the end of 2026.

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Citigroup, a New York-based bank whose performance has long lagged below that of other major US lenders, has made streamlining the business and reducing waste a top priority. The bank has undergone a makeover under Fraser, who took over in 2021. This includes reorganising its core business and selling off a large portion of its foreign retail division.

Citigroup said in a statement. “These changes reflect adjustments we’re making to ensure our staffing levels, locations and expertise align with current business needs; efficiencies we have gained through technology; and progress against our transformation work.”

Two years ago, Mark Mason, Citi's chief financial officer, predicted that the company's total workforce will drop by about 60,000 by the end of 2026, to roughly 180,000 workers. This includes the 40,000 employees who will depart when the company lists its Mexican retail banking operations in an IPO.

More than any other large bank, Citigroup's share price surged 66% last year. However, President Donald Trump's call for a cap on card lending rates paid to US consumers caused the business, a major credit card provider, to suffer on Monday, tumbling roughly 3.1%.