Citigroup CEO Jane Fraser has issued a stern ultimatum to the bank's 240,000 employees, calling on them to fully embrace her sweeping overhaul of the organisation or "get off the train," as reported by the Financial Times. The warning comes on the heels of significant changes announced by Fraser on September 13, aimed at realigning Citigroup's management structure with its strategic vision and streamlining its operations.
Fraser, who assumed the role of CEO in 2021, has long cultivated an image of approachability, but her recent message marks a shift in tone as she takes decisive action to reshape the bank.
Her earlier announcement on September 13 outlined ambitious plans to eliminate unnecessary complexity across the institution.
"I am determined that our bank will deliver to our full potential, and we're making bold decisions to meet our commitments to all our stakeholders," Fraser said in a statement.
"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 to deliver on our medium-term targets and our transformation."
Fraser's tough message to employees was reinforced during a recent town hall meeting, as reported by FT. At the gathering, Fraser urged Citigroup's workforce to get on board with the bank's ambitious goals.
"So lean in, help us win with clients, help us deliver the changes, or get off the train," she asserted.
Fraser's drive for transformation comes in the wake of her pledge to make Citigroup more profitable and less risky. However, she has yet to fully realise this commitment.
The departure of Paco Ybarra, a 36-year veteran and influential figure at Citigroup, provided the opening for Fraser to implement her reorganisation plans, effectively granting her greater day-to-day control.
Despite the significant overhaul, specific details regarding the number of job cuts and cost reduction targets have not been disclosed, causing internal frustration among employees, according to reports.
Additionally, Fraser has yet to name a permanent head for Citigroup's investment, commercial, and corporate bank — a pivotal role within the new management structure.
The bank has enlisted the services of executive search firm Egon Zehnder to identify suitable candidates. The search is reportedly in its early stages, with a focus on external talent.
Since Fraser's announcement of the organisational changes, senior executives have begun departing from Citigroup, and the exodus is expected to accelerate in the coming weeks.
Among those leaving is Eduardo Cruz, who heads Citi's Latin American investment banking operations, according to an internal memo. High-ranking executives overseeing Citigroup's non-US business, including European unit head Kristine Braden, have also departed in response to Fraser's restructuring.
Meanwhile, Citigroup employees in the United Kingdom (UK) received a memo indicating that the bank would initiate a review process in the coming week, leading to a "reduction in roles." However, the memo did not specify the number of positions to be eliminated from a total of 16,000 UK staff.
