Citigroup CEO Jane Fraser said Wednesday that the company is making "significant changes" to streamline its operating model and speed up decision-making.
Moving forward, Citi will divide into five interconnected businesses. The heads of each will become part of the company's executive management team, comprising 19 people, and report directly tor Fraser.
This reorganization essentially eliminates the Personal Banking & Wealth Management and Institutional Clients Group management layers as well as the existing regional layers in Asia Pacific, Europe, Middle East and Africa, and Latin America.
By elevating the leaders of Citi’s five businesses and eliminating management layers, the firm "will speed up decision-making, drive increased accountability and strengthen the focus on clients," according to Citi.
It will also give each leader a "greater influence on Citi’s strategy and execution" and enhance transparency for investors into Citi's core business, according to the financial institution.
However, the changes will also result in a "number of job cuts," people with knowledge of the matter told Bloomberg.
Although Citi didn't outright state that there would be layoffs, the firm said it is "committed to retaining top talent and supporting employees who are leaving the company."
Representatives for Citi have not immediately responded to FOX Business' request for comment.
"These changes eliminate unnecessary complexity across the bank, increase accountability for delivering excellent client service and strengthen our ability to benefit from the natural linkages that exist amongst our businesses," Fraser said in a statement Wednesday.
Fraser, the first female chief executive, took over in 2021. After taking the helm, she implemented a multiyear strategy to increase the bank's profitability and "better position the firm for the speed and complexities of the digital age."
Fraser already exited consumer banking in more than a dozen international markets, but Citi is still facing an ongoing stock slump. Shares of Citi have dropped 40% since her takeover more than three years ago.
The company said Wednesday that this reorganization is the "next logical step" to implement the plan it presented at its 2022 Investor Day and deliver its medium-term targets.