Citigroup is cutting more jobs as part of an ongoing cost-cutting plan

(Reuters) – Citigroup will cut more jobs this week after undergoing a major overhaul last year, as part of a sweeping reorganization under Chief Executive Jane Fraser to cut costs, a bank spokesman said on Thursday.

Managing directors at the company’s wealth and technology units are leaving the company, and Citi is also firing people from a team that collects data and analysis about the bank’s clients, according to a report by Bloomberg, citing people familiar with the matter.

Shadman Zafar, Dallas-based co-chief information officer, is part of the departures. A Citi spokesman confirmed that Zafar, a veteran banker, has decided to retire from his position.

“Leadership changes, retirements and targeted employee changes are all normal when running a business,” the bank said in a statement. The lender declined any further comment.

Much of the restructuring was completed last year after Fraser presented a plan in late 2023 to boost profits, streamline operations and address long-standing deficiencies in the bank’s data management and risk management.

The bank still expects to list its Mexican unit, Banamex, on the Mexican and US stock exchanges this year. However, market conditions and regulatory hurdles could delay the shares’ flotation until 2026, Fraser told analysts.

In December, the bank completed the separation of banking companies necessary for listing.

Citi’s stock rose 37% in 2024, outperforming the broader banking index and stock markets, as investors cheered Fraser’s efforts to transform the bank.

Citigroup’s fourth-quarter earnings beat estimates on Wednesday, helped by strong trading and dealmaking.

(Reporting by Pritam Biswas in Bengaluru; Editing by Alan Barona)