Citigroup, under the guidance of CEO Jane Fraser, is in the early stages of implementing a restructuring strategy called “Project Bora Bora.” The plan, announced in September, could result in a 10% reduction in headcount across departments, including administrative positions such as regional managers and co-leads. The Boston Consulting Group is promoting the project, which aims to increase stock value and empower Fraser.
The size of job cuts and cost savings are currently under review during the quarter. It was revealed last month that Citigroup has 240,000 employees worldwide. The layoffs are expected to be implemented from 2024 to 2025.
Sara Wechter, Citigroup’s chief human resources officer, outlined the changes in a global memo. She emphasized the elimination of redundant positions and the potential for new ones to emerge within the company. Eligible employees affected by these changes will receive severance pay, a notice period, and the opportunity to reapply for positions within the company.
Citigroup’s move comes amid widespread layoffs across industries. Tech companies such as Infosys, Amazon (NASDAQ: ), Google (NASDAQ: ), Byju’s, Wipro and Salesforce have also reduced their global headcount. Other companies making similar moves include Volkswagen AG (ETR: ), which is cutting 2,000 jobs at its software unit Cariad, and Electrolux Group, which plans to cut about 3,000 employees and restructure in the fourth quarter of 2023.
This trend has intensified over the past two years. In 2023 alone, there were 1,749 layoffs affecting 389,684 people globally, while in 2022, 1,557 layoffs affected 243,318 people. These layoffs are having a significant impact on daily life around the world.
Final details of Project Bora Bora and its impact on Citigroup employees are expected to be announced later this month.
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