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Citigroup has said it will cut around 300 senior roles, in what is expected to be a series of announcements around its new structure created as part of a sweeping overhaul by chief executive Jane Fraser.
The US bank said it was moving on its “next layer of changes”, with any cuts likely to affect those two levels below the C-suite. Bloomberg reported that around 300 employees would be affected and a person familiar with the matter told Financial News the same number. A Citi spokesperson declined to comment on the number of people affected.
“Today we shared with our colleagues the next layer of changes across many of our businesses and functions as we continue to align Citi’s organisational structure with our new, simplified operating model,” the bank said in a statement. “As we’ve acknowledged, the actions we’re taking to reorganise the firm involve some difficult, consequential decisions, but we believe they are the right steps to align our structure with our strategy and ensure we consistently deliver excellence to our clients.”
The bank will also announce further executive appointments. Manolo Falco, its co-head of investment banking, has been moved into a new role overseeing a senior banker group. Dealmakers in the new unit will focus on generating deals from top clients. Former Emea chief executive David Livingstone is heading up the unit; Leon Kalvaria, one of Citi’s most senior investment bankers, will also shift across to the new unit.
Ernesto Torres Cantú was named head of international, overseeing its businesses outside North America, Dow Jones newswires reported.
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Nacho Gutiérrez-Orrantia, who co-heads Citi’s investment bank in Emea, is set to be named head of banking for the European cluster, according to senior bankers at Citigroup. Further changes are expected.
Fraser’s overhaul restructuring of Citi is the biggest change at the bank for two decades.The aim is to simplify Citigroup as well as hand more oversight of key functions to Fraser. The plan will see thousands of jobs cuts in the front office and support functions such as compliance and risk management.
The bank announced during its third quarter results in October that the number of management layers will drop from 13 to eight. It has disbanded its institutional clients group and reorganised its business around five key units.
The bank cut around 35 investment banking jobs earlier in November, which were part of its annual cull of underperforming staff. It also put 250 London jobs under review, Financial News reported, which will largely affected managing directors and directors.
“We have taken hard, consequential, tough decisions here,” Fraser told an industry conference after announcing the changes in September. “They are not going to be universally popular within our bank. It’s going to make some of our people very uncomfortable. I am absolutely fine with that. I am confident that our strongest performers will be fully supportive of these moves.”
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To contact the author of this story with feedback or news, email Paul Clarke
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