Banking giant Citigroup will undergo some major changes in an attempt to boost its underperforming stock. Speaking with investors on Wednesday, Citigroup CEO Jane Fraser announced upcoming management restructuring and job cuts.
The management restructure will end the current business split of consumer and institutional divisions. Moving forward, Citigroup will have five main business divisions, with executives in charge of these divisions reporting directly to Fraser.
The job cuts are expected to impact back-office workers and regional leadership roles. However, the full scope of layoffs still remains unknown.
Speaking about the changes, Fraser explained that they were made with the goal of streamlining Citigroup’s operations and improving the company’s position on the market. She also said that she doesn’t expect them to be “universally popular within our bank.”
“It’s going to make some of our people very uncomfortable. I am absolutely fine with that,” Fraiser added. “I am confident that our strongest performers are going to be fully supportive of these moves, and it is absolutely the right thing to do for our shareholders.”
Citigroup’s shares have jumped 1.45% after Fraser’s announcement on Wednesday. The bank’s stock is currently trading at $42.28 per share, marking a 7.63% year-to-date decline.
