Citigroup Inc. (NYSE:C) is in the midst of a sweeping reorganization plan.
What Happened: The New York-based investment bank is expected to cut approximately 10% of its senior staff.
The move is part of an internal project known as Project Bora Bora and is reportedly far from its conclusion. The overhaul could eventually lead to “tens of thousands of positions eliminated,” according to Bloomberg.
Citigroup’s difficult decisions: “Today we shared with our colleagues the next layer of changes across many of our businesses and functions as we continue to align Citi’s organizational structure with our new, simplified operating model,” the company stated in a press release.
Why It Matters: The announcement signals a significant transformation for Citigroup.
It also reflects a broader trend of restructuring within the banking sector. Last year, Goldman Sachs Group Inc (NYSE:GS) implemented a significant reorganization plan when it combined various divisions.
Citi emphasized the importance of aligning the firm’s structure with its strategic goals and ensuring consistent excellence in client service.
“The actions we’re taking to reorganize the firm involve some difficult, consequential decisions, but we believe they are the right steps to align our structure with our strategy,” Citigroup CEO Jane Fraser said according to Reuters.
Market reactions: Shares of Citigroup were up 0.2% at 11:00 a.m. in New York, outperforming the broader Invesco KBW Bank ETF (NYSE:KBWB), which fell 0.3%.
