Citigroup CEO Jane Fraser calls for change in the company

35
2
Citigroup CEO Jane Fraser calls for change in the company

Citigroup CEO Jane Fraser has firmly signaled that it's time for change, calling for her staff to start pulling in the same direction or go their own way.

It came after Fraser, who took the top job at the firm in 2021, announced araft of changes to narrow the gap between her business and those of her rivals.

She aims to make the company more agile, by flattening her hierarchy, speeding up decision-making, and increasing individual responsibility.

Although moves to redistribute Citigroup's stock, which have virtually flatlined over the past three years, could prove popular with shareholders, an accompanying cut to jobs will be less so.

Announcing the shake-up in mid-September, Fraser acknowledged the cuts would be tough.

She said the company will be saying goodbye to some very talented and hardworking colleagues.

However, for those still in the company, there's work to be done-and Fraser wants buy-in from her staff.

Then, he told Citigroup's 240,000 employees during a company-wide call, saying it's gonna move fast.

He added: 'It was a very difficult decision,' he said.

Citigroup did not immediately return a request for comment.

Some current staffers have raised questions in the air about whether question marks should hang in the air. A raft of high-profile names are reportedly leaving the company - including Paco Ybarra, who heads the investment banking strategy and its institutional client group - and some have not been replaced.

Although some parts of Fraser's plan remain under wraps--the number of job cuts-staff will not be surprised that change has come to Citibank.

The chairman of America's third-biggest bank has always said innovation would be in the cards.

No. 5 is named after Fraser, who was named by the president of the United States. 3 on Fortune's 2022 Most Powerful Women list, was perhaps destined to be a breath of fresh air: She was the first female CEO on Wall Street, she has feelings of self-doubt, and she says she's proof that working part-time doesn't kill your career.

Under Fraser, Citigroup is waving goodbye to its regional system outside of the United States.

Previously, Citi had been intent on embeding itself as a local banker, with various executives heading up these divisions.

As of September, that's no longer the case. Ernesto Torres Cant, the head of Citi's International Division, oversees the 100 territories outside of the U.S.