Photo by Rubaitul Azad on Unsplash
Citigroup Layoffs Ensue as Part of CEO’s Restructuring Plan
November 20, 2023
Citigroup, America’s third-largest bank, has initiated a substantial round of layoffs as part of a planned restructuring of its corporate setup. This marks a significant phase in CEO Jane Fraser’s ambitious business transformation plan.
Among the employees affected by this imminent shakeup, an array of positions will be hit, ranging from chiefs of staff and managing directors to some lower-level workers. Some may have the opportunity to apply for different roles within the organization, and Citigroup has assured that eligible employees will be offered severance pay, as shared by the company’s human resources chief last month.
It’s clear that these developments are consistent with the strategy Fraser outlined in a memo dated Sept. 13. She unveiled the reorganization of the giant into five new divisions, with their respective heads reporting directly to her. This restructuring led to a couple of top executives making their exits. Fraser mentioned at the time that the following stage of disruption was scheduled to be executed by the end of November, with the “final changes” set to be in place by March 2024.
Fraser, who took the reins in March 2021, is in the hot seat as she’s tasked with steering Citigroup out of the prolonged patch of poor stock performance and soaring expenses. She is currently at a critical juncture, facing tough questions from investors regarding the bank’s ability to achieve the performance targets set last year.
While the exact scale of the job cuts remains uncertain, internal discussions suggest a potential reduction of at least 10% of the workforce in several business units. This information surfaced during the development of the aptly codenamed “Project Bora Bora.”
Employees receiving the pink slips will start getting notified this Wednesday, with more to follow daily through the start of the next week.
Recent News
Premium and Healthier Food Options Gain Traction
As consumers become more mindful of their spending, the global sales of cooking ingredients and meals saw a notable increase of 4.4% in 2023, driven by inflation and higher commodity prices, according to Euromonitor International. This trend underscores a shift in consumer behavior towards more economical choices while still showing a preference for premium, healthier, and environmentally sustainable options.
Dairy Manufacturers Inc. Issues Voluntary Recall of Baby Formula
In a significant move, Dairy Manufacturers Inc., a Texas-based company, has initiated a voluntary recall of several baby formula products after they were found to be noncompliant with U.S. Food and Drug Administration (FDA) regulations. The recall encompasses all lot codes of three specific products: Crecelac Infant 0-12, Farmalac 0-12, and Farmalac 0-12 Low Lactose. This announcement was officially published on the FDA’s website on Saturday.
Fitness Equipment to Become $18.4 Billion Market
The global fitness equipment market is projected to reach $18.4 billion by 2033, growing at a CAGR of 3.02% from 2024 to 2033, according to Allied Market Research. Key drivers include the integration of Internet of Things (IoT) technology in fitness devices and the rise of corporate wellness programs. IoT-enabled equipment captures workout metrics in real time, enhancing user engagement and offering personalized insights. Corporate wellness initiatives promote physical activity in the workplace, increasing demand for fitness equipment in corporate gyms.
Walmart Ends Partnership with Capitol One
Walmart has officially ended its consumer credit card agreement with Capital One, marking a significant shift in the retail giant’s financial partnerships. This decision follows a series of disputes over customer service issues that culminated in a legal battle and a federal judge’s ruling.