Citigroup Defends Against Controversy Over Alleged Promotion Cuts Amid Restructuring
Citigroup found itself on the defensive on November 26, 2024, amidst reports of drastic cuts to year-end promotions as part of its ongoing restructuring efforts. According to initial reports by The Financial Times, only about 2,000 employees were set to receive promotions, a significant drop from the usual 8,000 in previous years.
However, Citi was quick to dispute these claims, labelling the reports as “false“. The bank emphasized its firmwide organizational changes implemented earlier in 2024, which included promotions and role changes for a substantial number of colleagues. These changes, Citi stated, were to be taken into account during year-end evaluations.
The controversy underscores the ongoing tensions within the bank as CEO Jane Fraser spearheads a major transformation plan initiated in 2023. This plan aims to reduce the bank’s headcount by 20,000 employees by 2026. Insiders at the bank painted a picture of “pretty low” morale, with recent town halls focusing on issues of workplace toxicity and stress. In the end, the bank announced that over 8,500 colleagues received promotions effective from January 1, 2025.
Source: Citigroup Official Statement