Citigroup Inc.'s stock (C) experienced a modest increase of 0.3% in premarket trading on Monday, following reports by CNBC-TV regarding anticipated layoffs in select departments. These layoffs are part of the previously-announced restructuring plan under the leadership of Chief Executive Jane Fraser.
Project Bora Bora
Internally known as "Project Bora Bora," this undertaking involves significant job cuts, equal to or greater than 10%, across various major business segments. Sources familiar with the process revealed these details.
Potential Impact on Employees
According to one stock analyst interviewed by CNBC, Fraser is expected to make substantial changes, and it is highly likely that the job cuts will be more extensive and emotionally difficult than anticipated by employees.
Citigroup is planning to release additional information about the job cuts in January, coinciding with the announcement of its fourth-quarter results.
While the report remains unconfirmed, a Citi spokesperson refrained from directly commenting on it. However, they did acknowledge that the firm is making challenging decisions as part of its organizational realignment efforts. These actions are intended to align Citigroup's structure with its overall strategy, as communicated during the 2022 Investor Day event.