Citigroup is proceeding with further job cuts this week following a previous overhaul last year, as part of a broader reorganization led by Chief Executive Officer Jane Fraser to reduce expenses. The lender is reportedly eliminating managing directors in the wealth and technology divisions, as well as staff from a team responsible for analyzing client data. Among the departures is Dallas-based co-chief information officer Shadman Zafar, a banking industry veteran who has chosen to retire from his position.
According to a report citing knowledgeable sources, "leadership changes, retirements, and targeted staff adjustments are all standard practices in business," as stated by the bank, which declined to provide further details.
Significant restructuring took place last year after Fraser unveiled a plan in late 2023 aimed at enhancing profits, streamlining operations, and addressing longstanding issues in data governance and risk management.
The bank intends to list its Mexican unit, Banamex, on Mexican and U.S. stock exchanges this year, although market conditions and regulatory challenges could postpone the stock offering to 2026, as per Fraser's update to analysts. The separation of banking entities necessary for the listing was finalized in December.
Investors have shown optimism in Citigroup's transformation efforts, with its stock increasing by 37% in 2024, surpassing industry benchmarks and market performance. Citigroup reported a strong fourth-quarter profit on Wednesday, driven by robust trading and deal-making activities.