Breaking News
Investing Pro 0
Last Call for Cyber Monday! Save Now on Claim 60% OFF

Citigroup restructuring plan aims for 10% staff reduction

Published Nov 06, 2023 14:54
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters.
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio

Citigroup CEO Jane Fraser's restructuring initiative, known as "Project Bora Bora," is under scrutiny as it anticipates job cuts of at least 10% across various principal divisions. The announcement has caused a surge of concern among employees. The final count of layoffs, which could see executives facing cuts beyond the projected 10%, especially those in roles with overlapping responsibilities and operations staff supporting divested or reorganized businesses, will be settled in the upcoming weeks.

The bank has been grappling to match its competitors since Fraser took over in early 2021. Citigroup's price-to-tangible book value ratio stands at 0.49, considerably lower than market leaders like JPMorgan Chase (NYSE:JPM). Analysts from Edward Jones and Wells Fargo have both stressed the importance of a substantial workforce reduction from its current 240,000 employees. This step is seen as crucial for Fraser to enhance the bank's performance and achieve her target of elevating Citigroup's returns to at least 11%.

Titi Cole, Citigroup's head of legacy franchises, is spearheading the restructuring alongside Boston Consulting Group. Despite its peaceful codename, "Project Bora Bora" has created significant stress among employees. Banking consultant Pierre Buhler has pointed out that investors will need to see a decrease in expenses before gaining confidence in the plan's effectiveness.

Fraser revealed this significant restructuring plan during a hearing at the Rayburn House Office Building. Positions such as chiefs of staff and chief administrative officers are also at high risk of cuts. The plan and its financial impact are expected to be updated in January along with the announcement of fourth-quarter earnings.

InvestingPro Insights

Citigroup, a prominent player in the banking industry, has seen a significant return over the last week, as per InvestingPro data. The market cap stands at 80.88B USD, with a revenue of 72.55B USD as of Q3 2023. The company's adjusted P/E ratio is at 6.58, showing that it is trading at a low earnings multiple.

InvestingPro Tips suggest that the bank's revenue growth has been accelerating, and six analysts have revised their earnings upwards for the upcoming period. This could be a sign of potential growth despite the ongoing restructuring. On the other hand, the bank has been quickly burning through cash and suffers from weak gross profit margins, which might be some of the reasons behind the restructuring initiative.

InvestingPro offers a wealth of additional tips and data for those interested in the financial health and future of Citigroup and other companies. For instance, there are 8 more tips related to Citigroup currently listed on InvestingPro, providing a more comprehensive understanding of the company's financial situation.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Citigroup restructuring plan aims for 10% staff reduction

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
Sign up with Email