Could Citi's Latest Restructuring Turn the Stock's Fortunes Around?
Citigroup stock has shed more than 27% of its value since CEO Jane Fraser took the company's helm in 2021
Citigroup ( $Citigroup(C.US$ ) on Wednesday launched a restructuring effort, changing its organizational structure and cutting jobs as part of CEO Jane Fraser's effort to simplify the banking giant, in a move intended to provide a much-needed boost to shareholders.It's an effort motivated by the bank's declining financial performance and profitability. The bank's profit for the quarter ended in June tumbled 36% from a year ago, driven by higher expenses and credit costs.
What's In the Restructuring?
Fraser's effort is aimed at simplifying Citibank's organizational structure and transforming it into a leaner company. The leaders of its five business units—corporate and investment banking, wealth management, transaction services, markets, and U.S. consumer banking—will report directly to the CEO, resulting in fewer management layers.
Fraser's effort is aimed at simplifying Citibank's organizational structure and transforming it into a leaner company. The leaders of its five business units—corporate and investment banking, wealth management, transaction services, markets, and U.S. consumer banking—will report directly to the CEO, resulting in fewer management layers.
The restructuring effort could provide a much-needed boost to shareholders. Citigroup shares jumped about 2% on Wednesday.
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កូនខ្មែរ មហារ : wow