Citigroup (NYSE:C) CEO, Jane Fraser, has issued a stern warning to the bank's 240,000 employees, urging them to adapt to her overhaul of the organization or "get off the train". The warning marks a change in tone for Fraser, who has cultivated an image of approachability since taking the helm of the company in March 2021.
Earlier this month, on September 13, Fraser announced significant changes to Citigroup's organizational model aimed at aligning its management structure with its business strategy and simplifying the bank. This move marked the largest restructuring in 15 years. However, internal frustration has been reported as Fraser and her executives have not yet established a cost reduction objective or disclosed the number of employees that would be eliminated.
In a town hall meeting last week, Fraser reiterated her message to employees: "Get on board. We have incredibly high ambitions for this bank and, the train, it's gonna move fast. So lean in, help us win with clients, help us deliver the changes, or get off the train.”
Fraser's restructuring plan comes as she aims to make Citigroup more profitable and less risky. However, she has yet to deliver on that promise. The departure of 36-year veteran Paco Ybarra created an opportunity for Fraser to implement the reorganization, which will effectively give her more day-to-day control.
Despite this, there are still key positions left to fill within Citigroup. The bank is yet to name a permanent head of its investment, commercial, and corporate bank - a crucial position in the new management structure. To aid in this search, Citi has hired executive search firm Egon Zehnder.
The announcement of Fraser's overhaul has already led to departures from senior positions and this trend is expected to accelerate in the coming weeks. Eduardo Cruz, who heads Citi’s Latin American investment banking operations, is among several high-level executives focused on Citi’s non-US business to have left following Fraser’s restructuring announcement.
In the United Kingdom, Citigroup employees were informed via a memo that the bank will start a review process as soon as this week which would lead to a “reduction in roles”. However, the memo did not reveal how many positions would be eliminated out of a total of 16,000 staff in the UK.
Fraser, a 53-year-old Scottish native, graduated from Cambridge University with a master's in economics and holds an MBA from Harvard Business School. She began her career at Goldman Sachs (NYSE:GS) in London before moving to McKinsey & Co., where she rose to the position of partner. She then moved to Citigroup, where she has held various managerial positions since 1994. As the first female CEO of Citigroup, Fraser has broken the glass ceiling and set herself on a revolutionary path within the finance industry.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.