Citigroup Accelerates Restructuring with 1,000 New Job Cuts

Citigroup is moving forward with its sweeping organizational overhaul this week by cutting approximately 1,000 jobs.

This latest round of layoffs is part of “Project Bora Bora,” a multi-phase restructuring plan led by CEO Jane Fraser aimed at simplifying the bank’s management structure, reducing bureaucracy, and improving long-term profitability.

Strategic Downsizing and Leadership Consolidation

The current staff reductions primarily target those in the upper and middle management tiers.

Since launching the restructuring in September 2023, the bank has eliminated several layers of leadership to accelerate decision-making processes.

By removing these “co-head” roles and regional management layers, Fraser intends to give more direct accountability to the leaders of Citigroup’s five core businesses.

The ultimate goal is to reduce the total global workforce by approximately 20,000 roles—nearly 8% of the company—over the next two years.

Citigroup Financial Pressure and Operational Efficiency

The urgency of these cuts follows a challenging fiscal period for the Wall Street giant.

Citigroup reported a $1.8 billion net loss for the fourth quarter of 2024, largely driven by one-time charges related to currency devaluations in Argentina and a significant contribution to the Federal Deposit Insurance Corporation (FDIC) special assessment.

Despite these short-term losses, the bank’s leadership maintains that reducing the “overhead” of a complex global structure is essential to meeting its 2026 efficiency targets and boosting its lagging stock price.

The Human and Cultural Cost

The bank has set aside between $700 million and $1 billion this year for severance and reorganization costs. Despite these funds, internal morale remains a concern.

The layoffs are being managed in waves to allow for a transition to new reporting lines.

Executives have signaled that the bulk of the structural changes will be completed by the end of March 2026.

However, the gradual reduction of the total headcount will continue through 2027 as the bank automates back-office functions and exits certain international retail markets.

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