Citigroup Insiders Reveal Mass Layoffs Imminent

Citigroup on Monday announced the next round of leadership changes as part of its ongoing major reorganization, Reuters reported.

In a statement on Monday, Citigroup CEO Jane Fraser and other senior executives said while the actions to reorganize the firm are “difficult” and “consequential,” the company believes that they are “the right steps to align our structure with our strategy.”

Last week, Citigroup announced plans to reduce its management layers from thirteen down to eight as part of the firm’s biggest organizational overhaul in decades. In its top two layers, Citigroup reduced 15 percent of the functional roles and eliminated 60 committees.

In October, Citigroup, which employs 240,000 people worldwide, announced plans to eliminate co-heads of divisions, reduce 50 percent of its internal financial management reporting, and centralize its decision-making.

Memos obtained by Reuters detail the management changes to Citi’s wealth, investment banking, and consumer units, with several top executives leaving the firm while others will be moved to different positions.

The head of Citi Wealth Services, Edwardo Martinez Campos will be leaving the firm after over 30 years while Patricia Dorosz will be transferred to a new client division.

Nacho Gutiérrez-Orrantia in investment banking will become the banking and cluster head in Europe while several others in investment banking will be leaving.

According to another memo, in Citi’s US personal banking division, some roles have been merged while Brad Wayman, the former head of mortgage and small business lending, has been appointed chief operating officer. Chris McCullough will take over for Wayman to head mortgage and small business lending. Two other executives will be leaving.

According to sources familiar with the reorganization, there could be thousands of layoffs in the works. One source said some Citi staff would be able to apply for different positions in the firm.

Final announcements on the reorganization are expected early next year.