NEW YORK - Citigroup Inc (NYSE:C). has unveiled a sweeping plan to overhaul its operations, which includes cutting its workforce by about 10% and reducing management layers, as the banking giant grapples with a challenging economic environment. The restructuring move, dubbed the "Bora Bora" changes, will see the bank commence job cuts on January 22nd, eliminating approximately 20,000 positions.
The decision to streamline its workforce comes in the wake of a $134 million loss reported for the fourth quarter, primarily due to a downturn in fixed income revenues. In addition to the layoffs, Citigroup will also be scaling back its operations by shutting down its municipal bond trading division.
As part of the restructuring effort, the bank will reduce its management layers from thirteen to eight, in a bid to improve efficiency and decision-making processes. Citigroup's CEO, Jane Fraser, has stated that despite the setbacks, the institution remains focused on its critical work of rebuilding.
The bank has also allocated $1.3 billion to address international financial exposures, signaling a strategic shift to fortify its global financial standing.
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