Citigroup Takes Another Round Of Layoffs At Leadership Level As CEO Fraser Addresses Managing Directors: Report
Portfolio Pulse from Benzinga Neuro
Citigroup (NYSE:C) is undergoing a leadership overhaul and reorganization, with CEO Jane Fraser discussing the changes with managing directors. The bank is eliminating leadership roles in markets, risk, and investment banking, with some positions ending from Feb. 1. Citigroup plans to cut 20,000 jobs over the next two years after a $1.8 billion loss in Q4. The layoffs represent about 8% of its workforce and aim to streamline the bank and improve returns and share price. Meanwhile, Goldman Sachs (NYSE:GS) is hiring new talent for its asset and wealth management divisions, which saw a 23% revenue increase in Q4.
January 19, 2024 | 9:03 am
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Citigroup is facing a significant reorganization with plans to cut 20,000 jobs following a substantial Q4 loss. The layoffs and restructuring are part of CEO Jane Fraser's strategy to improve the bank's financial performance and stock value.
The news of layoffs and restructuring, especially after a significant quarterly loss, is likely to have a negative short-term impact on Citigroup's stock as it reflects cost-cutting measures due to financial strain.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
Goldman Sachs is actively seeking new talent for its asset and wealth management divisions, which have experienced a 23% revenue increase in Q4, outperforming estimates.
The positive news of revenue growth in Goldman Sachs' asset and wealth management divisions and the active recruitment to further grow these sectors is likely to be viewed favorably by investors, potentially leading to a short-term uptick in the stock price.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 70