Citigroup CEO Jane Fraser Signals Potential 1,000 Job Cuts to Boost Profitability
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2h ago
0mins
Source: seekingalpha
- Layoff Plans: Citigroup plans to cut approximately 1,000 jobs this week to encourage staff to focus on profitability targets, thereby enhancing overall operational efficiency and financial performance.
- Profitability Boost: Despite the layoffs, Citigroup's Q4 earnings exceeded expectations, with strong performance in investment banking and wealth management, indicating the company's potential for improved profitability.
- Regulatory Compliance Progress: Citigroup reported that roughly 80% of its regulatory compliance programs are at or near target state, and once completed, some staff hired for regulatory compliance may be cut, further optimizing human resource allocation.
- Future Work Transformation: Fraser noted that with the advancement of automation, AI, and process simplification, work methods will change, leading to the elimination of some roles while new ones emerge, reflecting the company's strategic planning for future development.
Analyst Views on C
Wall Street analysts forecast C stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for C is 115.10 USD with a low forecast of 104.50 USD and a high forecast of 134.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
16 Analyst Rating
11 Buy
5 Hold
0 Sell
Moderate Buy
Current: 116.300
Low
104.50
Averages
115.10
High
134.00
Current: 116.300
Low
104.50
Averages
115.10
High
134.00
About C
Citigroup Inc. is a global diversified financial services holding company. The Company’s segments include Services, Markets, Banking, Wealth and U.S. Personal Banking (USPB). The Services segment includes Treasury and Trade Solutions (TTS) and securities services. TTS provides an integrated suite of tailored cash management, trade and working capital solutions to multinational corporations, financial institutions and public sector organizations. The Markets segment provides corporate, institutional and public sector clients around the world with a full range of sales and trading services across equities, foreign exchange, rates, spread products and commodities. The Banking segment includes investment banking, which supports client capital-raising needs to help strengthen and grow their businesses. The Wealth segment includes Private Bank, Wealth at Work and Citigold and provides financial services to a range of client segments. USPB segment includes branded cards and retail services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
