Banking: Citigroup pursuing ‘Project Bora Bora,’ with staff reductions of at least 10% in some areas: report

Citigroup Inc. is planning layoffs of at least 10% in some departments as part of a previously announced restructuring under Chief Executive Jane Fraser, according to a report on Monday.

Citigroup’s stock
fell by 0.8% as word surfaced of the cost-cutting effort code named Project Bora Bora, according to the report by CNBC-TV, which cites people with knowledge of the process.

A Citi spokesperson did not comment on the report but 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 the plan we shared at our 2022 Investor Day.”

Citigroup disclosed 238,000 employees as of Sept. 30, down 2,000 from June 30.

One stock analyst told CNBC that Fraser “needs to do something big” and that there’s a good change the job cuts will be larger and more painful than employees expected.

Citi has said it will likely provide more details about job cuts in January, when it reports fourth-quarter results.

Also read: Investors should ‘be patient’ with beaten-down bank sector, buy-side fund manager says

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