Citigroup begins layoffs as part of CEO Jane Fraser’s corporate overhaul

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Citigroup will soon begin layoffs in CEO Jane Fraser's corporate overhaul, CNBC has learned.

Employees affected by the cuts will be informed starting Wednesday, with new dismissals announced daily through early next week, according to people with knowledge of the situation.

Those impacted will include chiefs of staff, managing directors and some lower-level employees, said the people. The cuts will spread to more rank-and-file staff by February, they added.

The move tracks with a timeline set by Fraser in a Sept. 13 memo. She announced five new divisions whose heads report directly to her, resulting in the departure of a handful of senior executives. The next phase of disruption will be «communicated and implemented by the end of November,» and «final changes» will be done by the end of March 2024, Fraser said at the time.

Fraser is under pressure to improve Citigroup, which has been mired in a stock slump as headcount and expenses have ballooned in recent years. The CEO, who took over in March 2021, is at a pivotal moment as she faces deep investor skepticism that the bank can hit performance targets she outlined last year.

Employees who have lost their roles may be able to apply for other positions, and Citigroup will offer severance pay where eligible, the company's human resources chief told workers last month.  

The full extent of job cuts is still being determined, but managers and consultants working on the project — known internally by its code name, "Project Bora Bora" — have discussed dismissals of at least 10% of workers in several businesses, CNBC reported last week.

New Citigroup organizational charts have been created, and managers are now deciding which employees they will retain and who