The ultimate number of layoffs will be determined in coming weeks as the massive project moves from management layers to rank-and-file workers. But some things are already clear, according to the people, who declined to be identified speaking about the confidential project.
Executives will see cuts beyond 10% because of Fraser's push to eliminate regional managers, co-heads and others with overlapping responsibilities, they said.
For instance, chiefs of staff and chief administrative officers across Citigroup will be pruned this month, said one of the people with knowledge of the situation.
Operations staff who supported businesses that have been divested or reorganized are also at higher risk of layoffs, said the people.
Even if Fraser announces a large reduction in workers, investors will probably need to see expenses drift lower before being convinced, said a banking consultant with . That's because of the industry's track record of announcing expense plans only to see costs creep up.
Still, it's up to Fraser and her deputies to sign off on the overall plan, and they may opt to de-emphasize expense savings. The project is primarily about removing unnecessary layers to help Citigroup serve clients better, according to a current executive.
Publicly, the bank has only said that costs would start to ease in the second half of 2024.
Citigroup declined to comment beyond this statement:
"As we've said previously, we are committed to delivering the full potential of the bank and meeting our commitments to our stakeholders," a spokeswoman said. "We've acknowledged the actions we're taking to reorganize the firm involve some difficult, consequential decisions, but they're the right steps to align our structure to our strategy and deliver we shared at our 2022 Investor Day."
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