Citigroup Layoff News: Employees Likely To See Management Reshuffle, Jobcuts On Monday

The next phase of the Citigroup sweeping reorganization could start as early as next week as the Citigroup employees are expected to get updates about management changes and layoffs on Monday, according to a Reuters report citing four people familiar with the situation. The bank employees are awaiting more details about the scale of layoffs at the bank. Citigroup employs around 240,000 people worldwide.

Last month, Citi, which is the third-largest lender in the US announced plans to slash management layers from 13 to eight as part of its biggest overhaul in decades. According to the bank's third-quarter earnings presentation, Citi reduced 15% of functional roles and eliminated 60 committees in the two top layers of leadership.

The lender will also eliminate co-heads of divisions and regional roles, cut 50% of internal financial management reporting, and centralize decision-making, said the report.

Support staff in compliance and risk management, and technology staff working on overlapping functions are at risk of being laid off, Reuters reported in September.

The company's corporate overhaul plan is intended to simplify the sprawling lender after getting rid of five layers of management. The job cuts are expected to begin by the end of this month and continue through the end of the first quarter.

Meanwhile, ahead of the start of the restructuring plan, Citigroup had racked up around $650 million in severance charges as part of cutting 7,000 positions in the initial nine months of this year.