Citigroup to Slash Year-End Promotions Amid Organization Overhaul

Core Viewpoint - Citigroup Inc. is planning to significantly reduce year-end promotions and pay increases as part of a broader organizational overhaul aimed at cost efficiency and headcount reduction [1][2][8]. Group 1: Year-End Promotions and Pay Increases - The bank is expected to offer promotions and pay hikes to only 2,000 employees, a decrease from approximately 8,000 in the previous year [2]. - Promotions this year will primarily be available to employees taking on new responsibilities, with salary increases capped at 15% [3]. Group 2: Organizational Overhaul - CEO Jane Fraser is leading a comprehensive restructuring to enhance performance, reduce costs, and simplify operations [4]. - The reorganization has reduced management layers from 13 to 8 and will involve the elimination of 20,000 jobs over the next two years [5]. Group 3: Strategic Business Focus - Citigroup is focusing on growth in core businesses while downsizing international operations, including the sale of its China-based consumer wealth portfolio to HSBC and plans to exit the Mexican market by 2024 [6]. - The company aims to achieve $2-2.5 billion in annualized savings by 2026 through these restructuring efforts [9]. Group 4: Market Performance - Citigroup's shares have increased by 13.8% over the past six months, compared to the industry's growth of 27.7% [10].