Citigroup Chief Executive Jane Fraser has warned employees that further job cuts may be ahead as the bank accelerates a sweeping restructuring aimed at improving profitability and simplifying its global operations.
In a blunt internal memo, Fraser emphasized that performance expectations are rising across the organization, signaling a shift toward a leaner and more disciplined operating model. The message follows a series of divestitures and organizational changes intended to refocus Citigroup on its core businesses.
Fraser, who took the helm in 2021, has been under pressure to close the performance gap with rivals such as JPMorgan Chase and Bank of America. Despite its global reach, Citigroup has struggled with lower returns and higher complexity, challenges Fraser has described as structural rather than cyclical.
The bank has already exited several consumer markets overseas and streamlined management layers. The latest warning suggests that workforce reductions may extend beyond previously announced cuts, particularly in support and back-office functions. Employees were told that effort alone would not be enough to meet the firm’s standards, reinforcing a culture of accountability.
Analysts say the tone of the memo reflects broader trends across the banking industry, where institutions are responding to higher interest rates, slower dealmaking, and rising costs. While revenue has benefited from higher rates, expense control remains a priority, especially as economic uncertainty persists.
Labor advocates have criticized the approach, arguing that aggressive cost-cutting risks morale and institutional knowledge. Fraser, however, has maintained that decisive action is necessary to ensure long-term competitiveness.
As Citigroup continues its overhaul, investors will be watching closely to see whether the restructuring delivers sustained improvements in efficiency and returns, or whether deeper challenges remain.
