Citigroup slashes banker promotions in cost-cutting drive: report

Group 1 - Citigroup CEO Jane Fraser plans to reduce the number of year-end promotions from 8,000 to just 2,000 employees, indicating a significant cost-cutting measure [1][2] - The expected pay increases for these promotions are limited to 15%, reflecting a tighter compensation strategy [2] - Fraser's turnaround plan includes cutting 20,000 jobs and simplifying business processes to boost profits [2][4] Group 2 - A Citi spokesperson denied the Financial Times report, asserting that promotions are a key part of the talent strategy and that a significant decline in promotions is inaccurate [3] - Fraser's tenure has faced challenges, including allegations of a toxic work environment and ongoing sexual harassment scandals [4][6] - Citigroup reported a smaller-than-expected drop in profit for the third quarter, supported by debt underwriting in investment banking [7] Group 3 - The bank is under investigation by multiple U.S. government agencies regarding its connections to sanctioned Russian billionaire Suleiman Abusaidovich Kerimov [7][8] - The investigations involve the bank's dealings with Heritage Trust, which manages assets owned by Kerimov [8]