Citigroup CEO Jane Fraser announced a corporate reorganization Wednesday, saying the move would cut down management layers and accelerate decisions.
Fraser said in a release that Citigroup would be divided into five main business lines that report directly to her. Previously, the firm had two main divisions catering to consumers and large institutional clients.
The changes will include job cuts, though the New York-based company hasn’t decided on a number yet, according to people with knowledge of the matter.
Fraser, closing in on her third full year atop Citigroup, is seeking to revitalize a firm mired in a persistent stock slump. While Citigroup is the third biggest U.S. bank by assets after JPMorgan Chase and Bank of America, it has a far smaller domestic retail banking presence than its competitors. That helps explain why Citigroup has struggled in the post-2008 financial crisis era.
The CEO has pulled back on Citigroup’s overseas retail presence, exiting more than a dozen markets including Mexico. But Citigroup stock has declined about 40% since Fraser took over in March 2021, the worst showing among her big bank rivals. Citigroup trades for the lowest valuation among U.S. big bank peers, and at around $41 per share, the stock is at levels seen during the 2008 crisis.
“These changes eliminate unnecessary complexity across the bank, increase accountability for delivering excellent client service and strengthen our ability to benefit from the natural linkages that exist amongst our businesses, all with an eye toward delivering on our medium-term targets,” Fraser said.
This is breaking news. Please check back for updates.