(CTN News) – According to five sources who have knowledge of the matter, Citigroup employees are expecting the bank to announce layoffs and a change in senior management as part of its biggest reorganization in decades on Monday, sources said.
There is concern that thousands of employees could lose their jobs as a result of the cuts, according to a source familiar with the problems who was not authorized to speak publicly.
A source has confirmed that the executive team is also likely to announce the replacement of senior staff through an email announcement.
It is believed that the preparations for Monday’s announcements were communicated verbally in meetings, according to a source familiar with the situation who was not authorized to speak publicly about the matter. It was suggested that some of the bank’s staff may be able to apply for a position at another branch, according to the source.
There was no comment from Citigroup on this matter.
It was announced last month that Citigroup was planning to cut management layers from thirteen to eight as part of the biggest overhaul the company has experienced in decades.
Citigroup said in its third-quarter earnings presentation that it had reduced 15% of the functional roles in the top two layers of leadership and had eliminated 60 committees from the top two layers of leadership.
There was a report by Reuters in September that the company is considering laying off compliance and risk management staff, along with technology staff who work on overlapping functions that could affect the company’s future.
A few people familiar with the situation have informed us that as part of the reshuffle, the US bank will name one of its most senior bankers in Europe, Nacho Gutiérrez-Orrantia, as its new head of banking in the region.
The Spanish banker will be responsible for Citigroup’s European operations in his new role as head of the Europe cluster at Citigroup.