Banking giant Citigroup (NYSE:C) is set to cut more than 300 senior manager roles as part of a restructuring plan pushed by the Jane Fraser-led management team, Bloomberg reported.
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Notably, this impacts senior managers who are two levels below the executive management team. According to a memo from the CEO, the job cuts will help to simplify operations within the bank, which will ultimately speed up the decision-making process.
In a statement, Citigroup said that the “difficult and consequential decisions” are the right steps and mentioned that the layoffs may continue into next year.
This restructuring plan will be the biggest the firm has performed in the last two decades. Importantly, the changes will see the bank shift its focus to five key businesses: trading, banking, services, wealth management, and U.S. consumer offerings.
Is Citigroup a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on C stock based on five Buys, seven Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 2.4% decrease in its share price over the past year, the average Citigroup price target of $50.77 per share implies 11.66% upside potential.
