Citigroup (NYSE:C) shares are trending marginally higher today after a Reuters report indicated that the financial behemoth is considering a 10% headcount reduction in some of its major businesses.
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The discussions are part of the reorganization efforts of Citi’s CEO Jane Fraser. Last month, the diversified financial services provider indicated that job cuts were coming, but the exact magnitude of the move is estimated to come in the current quarter.
Reportedly, the organizational overhaul is internally termed “Project Bora Bora,” and Citi has roped in Boston Consulting Group for the move. The job cuts are meant to do away with overlapping positions while also solidifying Citi’s reins in Fraser’s hands as she looks to boost the company’s stock price after a major slump.
So far, Citi has exited its consumer banking business in major markets, including India, China, Australia, and Taiwan. In total, the company plans to lower its consumer banking footprint in 14 major markets.
What is the Future of C Stock?
Citi shares have been on a downward trajectory for over two years now. From a high of about $80 in January 2021, the stock has corrected to the present $42 level. Overall, the Street has a Moderate Buy consensus rating on Citigroup. The average C price target of $49.65 implies a 17.5% potential upside.
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