A massive bank is now trimming its workforce for the third time this year resulting in thousands of job layoffs.
CNBC reports that Citi is considering trimming its headcount in several major units by at least 10% as the firm “embarks on a corporate overhaul it announced in September.”
The New York City-based bank’s workforce reduction plan, dubbed internally as “Project Bora Bora,” will eliminate regional managers, co-heads and other employees with overlapping responsibilities at the firm, CNBC reported Monday.
Chiefs of staff and chief administrative officers across the bank will be cut this month, sources told the media outlet.
Operations staff who aided divisions that have been divested or reorganized are also at higher risk of layoffs, they said.
The discussions are still in early stages and the number of roles cut could change, sources told CNBC.
Citi’s global headcount stands at 240,000, according to information the firm released last month.
“These are not decisions that have been taken lightly,” Citi CEO Jane Fraser wrote in a memo to employees in September, according to Bloomberg.
“We’ll be saying goodbye to some very talented and hard-working colleagues who have made important contributions to our firm.”
CFO Mark Mason in June said severance costs were booked for 5,000 job cuts this year across the company.
Citi cut 1,600 jobs in the second quarter and another 2,000 in the third.
Employees will know by the end of November any changes to their roles, Fraser said in the memo.
The changes are meant to eliminate “unnecessary complexity” across the bank, said the CEO.
“While much is at stake for Citi amid the reorganization, Fraser had no choice but to make major changes at the firm,” said Pierre Buhler, a banking consultant with SSA & Co.
“She had no choice. Citi is not doing well, so she’s firing on every cylinder,” he said.
Other Banking News Today
Massive California banks are now closing according to new reports, including several Wells Fargo branches and one BMO branch.
This week, 5 big bank branches are closing in California, a trend that is only expected to grow in the years to come.
Why are we seeing traditional branches across America collapse?
The rise of online banking has greatly impacted traditional banks, causing the entire industry to pivot and adapt to the ever growing digital world.
The following bank branches are expected to shutter in California soon:
- Wells Fargo. 303 2nd St, San Francisco
- Wells Fargo. Hores Parkway, Redwood City
- Wells Fargo. 305 W. Sepulveda Blvd, Torrance
- Wells Fargo. 7950 West Sunset Blvd, Los Angeles
- BMO Bank. 6055 East Washington Blvd, City of Commerce
“All over California, 277 bank branches have closed so far this year, second only this century to 2020, when 325 branches closed.
Branch openings are a much rarer occurrence: Only eight have occurred statewide this year,” reports Governing.
A recent report states that Wells Fargo plans to lay off approximately 525 of its employees based in Columbia, South Carolina, and close the bank’s corporate office there by June 30, 2024.
“Wells Fargo leaders are working to provide up-to-date facilities with modern workspaces and technology to create a more collaborative work environment that is a better employee experience,” Wells Fargo wrote in a notice.
“At the same time, we need to concentrate Wells Fargo real estate investments in fewer locations or reduce space in existing real estate,” the bank said.
Bank of Montreal (BMO) is cutting 228 jobs in California’s Bay Area next month, as the Canadian lender continues to shed positions following its February acquisition of San Francisco-based Bank of the West.
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