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Banking Revolution: CEO Jane Fraser’s ‘Project Bora Bora’ May Lead to Significant Job Cuts in Citigroug
Job Cuts at Citigroup – Introduction
Project Bora Bora aims to streamline the company and reduce costs. Executives will see cuts beyond 10% due to Fraser’s push to eliminate regional managers, co-heads and others with overlapping responsibilities. The exact number of layoffs has not been disclosed, but the announcement has caused anxiety among the bank’s 240,000 employees.
Jane Fraser took over as Citigroup’s CEO in February, becoming the first woman to lead a major Wall Street bank. The overhaul is part of her strategy to reposition the bank for growth after years of underperformance. Fraser’s plans include simplifying the bank’s management structure, exiting certain consumer operations in 13 markets outside the U.S., and investing more in wealth management and digital banking.
Job cuts are often a part of corporate restructurings, especially in the banking industry where technology and automation are reducing the need for certain roles. However, the potential scale of the cuts discussed at Citigroup has raised eyebrows, especially given the bank’s size and global reach.
The company hasn’t given any indication of when it will finalize its plans for Project Bora Bora. As with any restructuring plan, the job cut estimates could change as the plan takes shape. Employees, meanwhile, are anxiously waiting for any updates. While layoffs are never easy, Fraser has pledged to handle them with respect and empathy. She has also outlined plans to improve the bank’s diversity and inclusion efforts, and to invest in training and development to help staff adapt to the changing needs of the bank.
Citigroup is contemplating significant job cuts as part of CEO Jane Fraser’s company overhaul, known internally as Project Bora Bora. During discussions about the restructure, managers and consultants have reportedly debated laying off at least 10% of employees in several major departments. Fraser, who announced in September that her corporate revamp would result in an unspecified number of redundancies, aims to eliminate overlapping duties by removing regional managers, co-heads, and other similar roles. These planned cuts are said to be in their early stages and figures may change in the future.
Simplify Bank Structure
The changes are part of Fraser’s strategy to simplify the bank’s structure, reduce costs and improve returns. In addition to reducing headcount, Fraser is also pushing to get rid of unnecessary layers of management and bureaucracy. However, the move has triggered anxieties among employees who are fearful about their job security.
Project Bora Bora also involves merging certain businesses, reducing the number of products and services, and reorganizing teams around segments of customers rather than products. The cuts are expected to occur in units including the consumer bank, the investment bank and the wealth management division.
Fraser, who became Citigroup’s first female CEO in March, is under pressure to restructure the bank, which has been struggling with low returns, regulatory issues and outdated technology. Her plan is meant to improve the bank’s performance by focusing on businesses where Citigroup has a competitive advantage and getting out of those where it doesn’t.
While the potential job cuts are causing concerns, Fraser has also been trying to reassure employees. In a recent town hall meeting, she sought to address these concerns, saying that the bank will be “fair and sensitive” in handling the layoffs.
“We understand this is hard news,” Fraser said, according to a person who attended the meeting. “We will make this transition as smooth as possible, and we will be there to support our people.”
Citigroup, which is the third-largest U.S. bank by assets, has not publicly disclosed how many jobs will be cut, but the drastic measures underline the challenges the bank faces as it tries to turn itself around.
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