US banking giant Citi has announced changes to its global organizational structure, which will include scrapped management layers and job cuts.
Citi will make significant changes to its organizational model with a focus on alignment with business strategy and simplification of the bank, according to a statement.
«The new, flatter structure elevates the leaders of Citi’s five businesses and eliminates management layers, which will speed up decision-making, drive increased accountability and strengthen the focus on clients,» the bank said. «Simplifying the organization will also advance the execution of Citi’s transformation, the firm’s top priority.»
Five Business Heads
Moving forward, there will be five business heads at the most senior level who will report directly to CEO Jane Fraser and become members of the executive management team.
The business heads are Shahmir Khaliq as head of services (including treasury and trade solutions as well as securities service); Andrew Morton as head of markets; Peter Babej as interim head of banking (including investment, corporate and commercial banking); Andy Sieg as head of wealth; and Gonzalo Luchetti as head of US personal banking. Citi is looking to hire externally for the permanent banking head role.
Job Cuts
Moving forward, geographical leadership outside of North America will be consolidated under head of international Ernesto Torres Cantú. The new model will also eliminate management layers in the personal banking & wealth management and institutional clients group, as well as regional layers in Asia Pacific, Europe, Middle East and Africa and Latin America.
«As Citi swiftly transitions to this new model, the firm is committed to retaining top talent and supporting employees who are leaving the company,» the bank said.
«These changes eliminate unnecessary complexity across the bank, increase accountability for delivering excellent client service and strengthen our ability to benefit from the natural linkages that exist amongst our businesses, all with an eye toward delivering on our medium-term targets and our transformation,» Fraser added.
