Citi Streamlines its Management Structure

As part of Citi’s extensive restructuring, the bank aims to streamline its management structure and consolidate financial operations under the lead CFO, aiming for increased efficiencies across the organization.

Citi’s CFO, Mark Mason, highlighted during the Goldman Sachs’ U.S. Financial Services Conference that he has taken on the finance responsibilities previously distributed among multiple CFOs within distinct groups. “Before we announced the reorg, I had an institutional clients group CFO, a personal banking and wealth management CFO, and a Latin America CFO, as well as a Europe, Middle East, and Africa CFO and an Asia CFO, and underneath them, they all had CFOs for the five core businesses. By eliminating those roles, those businesses are now sitting at my table,” Mason explained.

The elimination of these CFO positions and the associated support roles is expected to generate cost savings and enhance the company’s operational effectiveness. Mason attributed headcount reductions in June to an ambitious technology transformation initiative coupled with plans to exit 14 countries. The bank aims to complete its restructuring effort by the end of the first quarter of 2024.

This restructuring marks the implementation of CEO Jane Fraser’s strategy announced in September, which replaced the bank’s two-division structure with five units directly reporting to Fraser. The plan also includes reducing management levels by 10% below the executive management team.

Mason emphasized the comprehensive nature of the restructuring, emphasizing the accountability of leaders within the five core businesses to investors transparently. The bank’s anticipated expenses for 2023, excluding a special assessment charge, include around $1 billion for restructuring, with additional expenses of a few hundred million expected in the fourth quarter. Looking ahead to 2024, Mason estimates expenses between $51 billion and $53 billion, with ongoing downward pressure on expenses as the restructuring progresses. He also mentioned an expected revenue of around $78 billion for 2023.

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