Citi will begin informing employees Wednesday about job cuts, and new dismissals will be announced daily through early next week, people with knowledge of the situation told CNBC.
A spokesperson for the bank declined to comment to the network Wednesday, except to point to its previous statement on the matter.
“We’ve acknowledged the actions we’re taking to reorganize the firm involve some difficult, consequential decisions, but they’re the right steps to align our structure to our strategy and deliver the plan we shared at our 2022 Investor Day,” the bank said in that statement.
Citi announced a large-scale reorganization in September aimed at eliminating layers of management such as regional managers, co-heads and employees with overlapping responsibilities.
While the scale of reductions has not been made public, sources familiar with the matter told CNBC last week the bank could trim headcount in some major units by 10%. Chiefs of staff and chief administrative officers across the bank will be cut this month, sources told CNBC last week.
Citi CEO Jane Fraser told employees in a September memo that employees would know by the end of November any changes to their roles.
“These are not decisions that have been taken lightly,” Fraser wrote in the memo. “We’ll be saying goodbye to some very talented and hard-working colleagues who have made important contributions to our firm.”
As part of its reorganization, Citi named five division heads in September. Those executives had been expected to streamline one layer of management in November and another in January, according to Reuters.
“Final changes” to the organizational right-sizing are expected in March 2024, CNBC reported.
But Citi isn’t the only Wall Street power trimming roles this week. Wells Fargo is reportedly cutting 40 to 50 jobs at its corporate and investment bank, people with knowledge of the matter told Bloomberg on Tuesday.
Cuts include several at the managing director level, and some junior roles, as well, the sources told the wire service. The bank informed some affected employees this week, Bloomberg reported.
“Like all well managed organizations, we regularly review and evaluate the needs of our clients and the markets we serve in order to ensure we align our resources accordingly,” a Wells Fargo spokesperson told Bloomberg and Reuters in a statement. “These departures represent a small number, and we remain fully committed to our corporate & investment banking business. We have a strong and expert bench of talent that continues to serve our clients across various industries and regions.”
Wells Fargo counted 227,363 employees as of Sept. 30. That figure is down 5% from a year earlier, according to Bloomberg.