The CEO revealed that there is a possibility of layoffs, the largest scale in nearly 20 years! Citigroup to undergo business restructuring in the United States
Large Wall Street investment banks in the United States are once again embroiled in a "painful layoff" controversy. According to multiple foreign media reports, Citigroup announced on the 13th that it will carry out business restructuring to reverse the long-term low stock price. It is understood that this will be the largest internal restructuring of Citigroup in nearly 20 years.
Citigroup CEO Fan Jieen said in a statement on the same day that Citigroup will no longer be managed by three regional leaders in approximately 160 countries and regions worldwide. She plans to split the group's business into five modules, and the responsible persons of the relevant modules will report directly to her. Meanwhile, Fan Jieen also stated that there may be layoffs in the future, but she did not disclose the number of layoffs.
After Fan Jieen's restructuring plan was announced, Citigroup's stock price rose by over 1.6% on the same day. According to analysts, Citigroup's stock has been one of the lower priced stocks among major US banks since the 2008 financial crisis due to a lack of innovation in the group's business and talent loss.
Not only Citigroup, but other large financial institutions in the United States are also undergoing layoffs or business restructuring. Earlier this month, insiders reported that Goldman Sachs was planning to launch a new round of layoffs at the end of October, involving multiple departments. Since the beginning of this year, Goldman Sachs has laid off thousands of employees. As the Federal Reserve initiated a rate hike last year, merger and acquisition activities began to slow down, and Wall Street's expectations for investment banking profits this year may fall short. According to data from financial information service provider Luft, global investment banking revenue has decreased by approximately 16% to $43.7 billion since the beginning of this year.