Republished with full copyright permissions from The San Francisco Press.

Citigroup, one of the world’s largest banking institutions, has recently announced a significant restructuring led by CEO Jane Fraser. With a vast network spanning over 160 countries and serving millions of customers, Citigroup has historically grappled with a complex organizational structure and management challenges. In an effort to streamline operations, increase efficiency, and enhance decision-making processes, Fraser is initiating major changes within the bank’s executive ranks.

Streamlined Leadership and Decision-Making:
Recognizing the need for a more unified approach, Fraser has taken decisive steps to empower the heads of Citigroup’s five key businesses. Through a direct reporting structure to Fraser herself, these leaders will have a more significant influence on the bank’s daily operations and crucial decision-making. Fraser conveyed the importance of having leaders at the forefront, actively engaged in steering the organization toward success.

Restructured Business Divisions:
Citigroup’s five primary businesses, namely services, markets, banking, consumer banking, and wealth management, will constitute the bank’s core focus moving forward. By aligning these divisions more closely with the CEO’s office, Citigroup aims to enhance collaboration, efficiency, and effectiveness. Fraser’s vision is to eliminate unnecessary management layers and foster clearer lines of decision-making throughout the organization.

Elimination of Co-Head Structures and Committees:
Citigroup has historically relied on numerous co-head structures and a plethora of committees, leading to inefficiencies and burdensome executive time. As part of the restructuring, Fraser plans to reduce the number of co-head positions significantly. Additionally, a considerable number of committees will be eliminated, enabling management to focus on critical priorities and freeing up valuable time for strategic initiatives.

Impact on Talent and Jobs:
While the exact number of job cuts resulting from the restructuring remains undisclosed, Citigroup has acknowledged that the changes will impact roles across the organization. Fraser emphasized that affected employees will be notified about any role adjustments by the end of November. Acknowledging the tough decisions made, she acknowledged that the restructuring may make some employees uncomfortable. However, Fraser’s commitment to driving positive change remains unwavering.