Citigroup Inc. is making another significant change under the leadership of Chief Executive Jane Fraser. The major Wall Street bank is reportedly closing its distressed-debt business, following the recent announcement that it will also shutter its municipal-bond group by the end of March. The decision is expected to impact approximately 20 positions within the bank’s distressed-debt desk, which currently employs about 40 people.
This move is part of Citigroup’s larger organizational restructuring, known internally as “Project Bora Bora,” which was introduced in September. With the goal of cutting costs, streamlining management, and enhancing financial performance, this initiative could potentially result in job cuts of at least 10% across various departments of the bank, which currently employs 240,000 individuals.
Jane Fraser, who took over as CEO, is focused on restoring investor confidence in Citigroup. The bank has struggled to meet its targets and has fallen behind its Wall Street competitors in terms of returns in recent years. Fraser’s decisive actions are aimed at improving the bank’s overall performance and positioning it for future success.
Despite facing challenges, Citigroup’s stock price reflects some positive momentum. After closing down 1.7% in Wednesday’s session, it saw a slight increase of 0.3% in after-hours trading. Overall, the stock has risen by 10.7% year-to-date.
This latest development underscores Citigroup’s commitment to adapt to the ever-changing financial landscape under Fraser’s leadership. The closure of the distressed-debt business is just one step in a wider transformational journey for the bank as it strives to redefine its competitive edge and regain market confidence.