Citigroup (C) is Planning to Reduce its Workforce in Tampa
Citigroup Inc. C is likely to cut jobs in Tampa post the announcement by CEO Jane Fraser regarding elimination of extra management layers earlier this month. This news was reported by The Business Journals.
Tampa is home to more than 10,000 of Citigroup’s employees and represents over two dozen of its business lines including security services, private banking, legal support, compliance and risk management, and human resources.
Earlier this month, Reuters reported that job cuts were most likely to take place for employees in the compliance and risk management segments. Also, the staff engaged in overlapping functions in the technology department had a high risk of being laid off.
Further, this week, per a Reuters article, Citigroup alerted employees in the U.K. of probable redundancies. Its U.K. business has 16,000 employees but it was unclear which areas of it will be affected by job cuts. Markedly, as many as hundreds of roles are expected to be affected. The company is likely to set up a consultation process, whereby employees can give their feedback.
Workforce trimming is part of the multi-phase strategic reform by Fraser, that will make the decision-making process swifter, drive increased accountability and enhance focus on clients.
While next phase of this strategy is expected to be communicated to employees by November end, the first phase is to remove unnecessary complexity across the bank.
With a view to achieve this, the new model removes management layers in Personal Banking & Wealth Management, and the Institutional Clients Group. Specifically, the leaders of each of C’s five main businesses would report directly to Fraser and be members of the Executive Management team.
Citigroup’s shares have lost 10.5% in the year-to-date period compared with the industry’s decline of 8.7%.
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C presently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Like Citigroup, Wells Fargo & Company WFC and The Goldman Sachs Group, Inc. GS have been reducing their workforces.
At a recent investor conference, Wells Fargo’s chief financial officer, Mike Santomassimo, noted that the company is eyeing opportunities to cut down expenses by reducing its real estate footprint and headcount.
Since third-quarter 2020, WFC has cut almost 40,000 jobs. Santomassimo added, “We had too much real estate before Covid, and so we’ve been methodically working through that portfolio over the last few years.”
GS is planning another wave of job cuts that could take place as soon as next month, per a Financial Times article. This is part of its yearly practice of letting go of those employees deemed to be the lowest performers.
The expected move usually affects 1-5% of GS’s total staff. The company is aiming to reduce jobs at the lower end of the range, primarily in its main business divisions like investment banking and trading.
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