Citigroup is making headlines again as it proceeds with another round of job cuts this week, following last year’s significant organizational reshuffle. A spokesperson for the bank confirmed on Thursday that these steps are part of CEO Jane Fraser’s extensive strategy to trim expenses and optimize operations.
The company is parting ways with several managing directors in both its wealth and technology divisions. Beyond this, Citi is also reducing the size of a team that deals with collecting and analyzing data about their clients. This information, revealed in a Bloomberg report, draws from sources with insider knowledge on the situation.
Among those exiting is Shadman Zafar, who served as the co-chief information officer from Dallas. After a long career in banking, Zafar has opted for retirement, a decision echoed by a Citi representative.
In a statement, the bank noted that such leadership transitions, retirements, and focused staff adjustments are typical business operations. However, they refrained from offering further remarks on the matter.
The overhaul, largely completed last year, was part of Fraser’s ambitious blueprint shared in late 2023, aimed at enhancing profitability, simplifying the firm’s structure, and tackling long-standing issues in data management and risk oversight.
Looking ahead, Citigroup plans to list its Mexican unit, Banamex, on stock exchanges in Mexico and the U.S. this year. Yet, potential market conditions and regulatory challenges could push this initial public offering as far back as 2026, as Fraser informed analysts.
The preparatory separation of banking entities required for this listing was wrapped up by the bank in December.
Investors have responded positively to Fraser’s transformative initiatives, driving Citigroup’s stock up by 37% in 2024, a performance that surpasses both the general banking index and the equity markets.
On Wednesday, Citigroup exceeded expectations with its fourth-quarter earnings, bolstered by robust trading and deal-making activities.
