Citigroup Inc (NYSE:C). is in the early stages of implementing a restructuring strategy known as 'Project Bora Bora', under the direction of CEO Jane Fraser. The plan, which was announced in September, could result in a 10% reduction in the workforce across various divisions, including executive roles such as regional managers and co-heads. The Boston Consulting Group is facilitating the project, with the aim of enhancing stock value and empowering Fraser.
The scale of the layoffs and cost savings is currently under review this quarter. As per last month's disclosure, Citigroup's global headcount stands at 240,000. The job cuts are expected to be carried out from 2024 to 2025.
Sara Wechter, Citigroup's chief human resources officer, outlined these changes in a global memo. She highlighted the removal of redundant positions and the potential emergence of new roles within the company. Eligible employees affected by these changes will be provided severance pay and notice periods, and have the opportunity to reapply for positions within the company.
This move by Citigroup comes amid a trend of widespread job cuts across various industries. Tech firms like Infosys (NS:INFY), Amazon (NASDAQ:AMZN), Google (NASDAQ:GOOGL), Byju's, Wipro (NYSE:WIT), and Salesforce (NYSE:CRM) have also been reducing their global workforce. Other companies making similar moves include Volkswagen (ETR:VOWG_p), which is cutting 2,000 jobs at its software unit Cariad, and Electrolux Group, which plans to lay off around 3,000 positions and take a restructuring charge in Q4 2023.
This trend has intensified over the past two years. In 2023 alone, 1,749 layoffs affected 389,684 people globally while in 2022, 1,557 layoffs impacted 243,318 individuals. These layoffs are significantly impacting daily lives across the globe.
The final details of 'Project Bora Bora' and its impact on Citigroup's workforce are expected to be disclosed later this month.
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