Citigroup chief Jane Fraser has unveiled a plan to eliminate five layers of management in what is poised to become the bank’s largest restructuring in two decades, according to a presentation unveiled Friday.
Since major reorganization changes were announced last month, Citigroup has scrapped its two core operating units — which had focused on institutional and consumer clients — and reorganized into five key business units including trading, banking, services, wealth management, and US consumer offerings.
The bank has also axed 60 management committees in a move to cut costs and streamline operations.
Citi stock jumped more than 3%; shares were trading around $43 per share following the news.
The bank provided more detail about additional structural changes it plans to make like removing layers of management as part of its third quarter earnings.
Citi reported revenue of $20.14 billion beating expectations and jumping 9% year over year.
“We announced consequential changes that align our organizational structure with our strategy and changes how we run the bank,” CEO Fraser said of the move.
She added it will allow Citi to have “a simpler firm that can operate faster, better serve our clients and unlock value for our shareholders.”
A spokesperson for Citi noted the bank had signaled it would be making these changes in a statement last month but declined further comment.