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Citigroup Inc. (C - Free Report) announced an organizational restructuring to simplify and eliminate extra management layers. This will make the decision-making process swifter, drive increased accountability and enhance the focus on clients.
The new model removes management layers in Personal Banking & Wealth Management, and the Institutional Clients Group. The bank also reduces existing regional layers in the Asia Pacific, Europe, Middle East and Africa, and Latin America.
Specifically, the leaders of each of C’s five main businesses — Banking, Markets, Services, Global Wealth Management and U.S. Personal Banking — will report directly to CEO Jane Fraser and be members of the Executive Management team.
The company also consolidates the leadership of the firm’s international business under Ernesto Torres Cantú, Head of International. Also, the Banking and International segments will share a common management team to facilitate better connectivity for clients.
Citigroup creates a Client organization group for fortifying client engagement and experience across the bank’s global network and businesses.
Citigroup’s CEO, Jane Fraser, stated, “These changes eliminate unnecessary complexity across the bank, increase accountability for delivering excellent client service and strengthen our ability to benefit from the natural linkages that exist amongst our businesses, all with an eye toward delivering on our medium-term targets and our Transformation.”
The new reporting is likely to begin with fourth-quarter earnings. The simplification move is likely to drive the company’s efficiency.
Corporate reshuffle aside, Citigroup expects to do a modest level of buybacks in the third quarter. The company expects third-quarter investment banking revenues between flat and modestly up year over year, backed by decent debt capital market activities, while Markets revenues are likely to be up in the low-single-digit range. Expenses are anticipated to be $13.7 billion, whereas the cost of credit is likely to be $1.9 billion, with continued normalization on the consumer side.
Over the past six months, shares of Citigroup have declined 3.5% against the industry’s rise of 5%.
Similar to C, Wells Fargo & Company (WFC - Free Report) and The Goldman Sachs Group, Inc. (GS - Free Report) have been reducing their workforces.
At a recent investor conference, Wells Fargo’s chief financial officer, Mike Santomassimo, noted that the company is eyeing opportunities to cut down expenses by reducing its real estate footprint and headcount.
Since third-quarter 2020, WFC has cut almost 40,000 jobs. Santomassimo noted, “We had too much real estate before Covid, and so we’ve been methodically working through that portfolio over the last few years.”
GS is planning another wave of job cuts that could take place as soon as next month, per a Financial Times article. This is part of its yearly practice of letting go of those employees deemed the lowest performers.
The expected move usually affects 1-5% of GS’s total staff. The company is aiming to cut jobs at the lower end of the range, primarily in its main business divisions like investment banking (IB) and trading.
Per a Bloomberg report, Barclaysintends to eliminate hundreds of jobs across its trading and IB divisions, while separately, Reuters reported that BCS is considering trimming 400 jobs in its retail banking business as part of its broader strategic review.
Persons familiar with the matter noted that Barclays plans to eliminate 5% of its client-facing employees in the trading business, along with a number of dealmakers globally, and restructure teams within its U.K. consumer banking business.
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Citigroup (C) Realigns Corporate Structure, Trims Management Layers
Citigroup Inc. (C - Free Report) announced an organizational restructuring to simplify and eliminate extra management layers. This will make the decision-making process swifter, drive increased accountability and enhance the focus on clients.
The new model removes management layers in Personal Banking & Wealth Management, and the Institutional Clients Group. The bank also reduces existing regional layers in the Asia Pacific, Europe, Middle East and Africa, and Latin America.
Specifically, the leaders of each of C’s five main businesses — Banking, Markets, Services, Global Wealth Management and U.S. Personal Banking — will report directly to CEO Jane Fraser and be members of the Executive Management team.
The company also consolidates the leadership of the firm’s international business under Ernesto Torres Cantú, Head of International. Also, the Banking and International segments will share a common management team to facilitate better connectivity for clients.
Citigroup creates a Client organization group for fortifying client engagement and experience across the bank’s global network and businesses.
Citigroup’s CEO, Jane Fraser, stated, “These changes eliminate unnecessary complexity across the bank, increase accountability for delivering excellent client service and strengthen our ability to benefit from the natural linkages that exist amongst our businesses, all with an eye toward delivering on our medium-term targets and our Transformation.”
The new reporting is likely to begin with fourth-quarter earnings. The simplification move is likely to drive the company’s efficiency.
Corporate reshuffle aside, Citigroup expects to do a modest level of buybacks in the third quarter. The company expects third-quarter investment banking revenues between flat and modestly up year over year, backed by decent debt capital market activities, while Markets revenues are likely to be up in the low-single-digit range. Expenses are anticipated to be $13.7 billion, whereas the cost of credit is likely to be $1.9 billion, with continued normalization on the consumer side.
Over the past six months, shares of Citigroup have declined 3.5% against the industry’s rise of 5%.
Image Source: Zacks Investment Research
Currently, Citigroup carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Similar to C, Wells Fargo & Company (WFC - Free Report) and The Goldman Sachs Group, Inc. (GS - Free Report) have been reducing their workforces.
At a recent investor conference, Wells Fargo’s chief financial officer, Mike Santomassimo, noted that the company is eyeing opportunities to cut down expenses by reducing its real estate footprint and headcount.
Since third-quarter 2020, WFC has cut almost 40,000 jobs. Santomassimo noted, “We had too much real estate before Covid, and so we’ve been methodically working through that portfolio over the last few years.”
GS is planning another wave of job cuts that could take place as soon as next month, per a Financial Times article. This is part of its yearly practice of letting go of those employees deemed the lowest performers.
The expected move usually affects 1-5% of GS’s total staff. The company is aiming to cut jobs at the lower end of the range, primarily in its main business divisions like investment banking (IB) and trading.
Per a Bloomberg report, Barclaysintends to eliminate hundreds of jobs across its trading and IB divisions, while separately, Reuters reported that BCS is considering trimming 400 jobs in its retail banking business as part of its broader strategic review.
Persons familiar with the matter noted that Barclays plans to eliminate 5% of its client-facing employees in the trading business, along with a number of dealmakers globally, and restructure teams within its U.K. consumer banking business.