Citi prepares for job cuts in London as part of restructuring initiative By Investing.com
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LONDON – Citi is set to commence another phase of its restructuring program, known internally as the Bora Bora initiative, with job cuts anticipated at its Canary Wharf office. The move, part of CEO Jane Fraser’s strategy to streamline operations, targets managerial positions up to four levels below her. Insiders have voiced concerns over potential layoffs and excessive managerial layers, signaling a period of uncertainty for the bank’s staff.
The restructuring process comes after Citi has faced internal criticism for underinvestment in its foundational investment-grade bond business. Despite this, certain areas within the bank may see less impact from the job cuts. Debt Capital Markets (DCM) managing directors are expected to face fewer layoffs, buoyed by positive revenue forecasts attributed to corporations adjusting to sustained high-interest rates and becoming more active in debt markets.
The treasury and trade solutions sector is highlighted as a key area of strength for Citi, with robust revenue increases reported. This sector’s performance aligns with Fraser’s overall objective to enhance revenues while managing expenses tightly.
Additionally, front office roles such as macro strategists have experienced cuts following seven quarters of rate changes. These reductions come despite previous expectations that these positions would be secure amidst fluctuating financial markets.
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