Citigroup executives and consultants working on CEO Jane Fraser’s reorganization discussed the position discounts of at least 10% at several large companies, CNBC reported Monday, citing people with knowledge of the process. Reuters: The bank warned of job cuts as part of a sweeping overhaul unveiled in September, but said it would assess the scale of layoffs and cost savings in the current quarter. The reorganization, known internally as “Project Bora Bora” according to CNBC, aims to give Fraser more direct control as it seeks to streamline the Wall Street giant and boost its stock price.
Discussions are in the early stages and the number of people laid off could change, CNBC said, adding that the lender had hired Boston Consulting Group for the plan. Fraser’s efforts to eliminate regional directors, co-directors and others with overlapping roles will result in job cuts of more than 10% for executives, the report said. Last month, Citi announced it would reduce the number of management levels from 13 to eight. At the top two levels of management, 15% of functional roles have been reduced and 60 committees have been eliminated, it says. The bank’s global headcount remained at 240,000 this year, it revealed in its latest quarterly supplement last month.