Citigroup Inc (NYSE:C) is contemplating a significant workforce reduction, potentially cutting 10% of its employees, as CEO Jane Fraser embarks on a major restructuring initiative, internally dubbed "Project Bora Bora."
According to CNBC, this potential move has sent ripples of concern through the ranks of the bank's 240,000 employees, with Fraser acknowledging the difficult farewell to be bid to numerous skilled colleagues.
The restructuring, which is still in the planning stages with details subject to change, is part of Fraser's strategy to address the bank's underperformance issues, the news outlet said.
Citigroup's valuation lags behind its peers, trading at a price-to-tangible book value ratio of 0.49, which is notably lower than the average of US counterparts, Monday's report noted.
The bank's plans and the financial implications of the restructuring are expected to be detailed in January alongside the fourth-quarter earnings report, CNBC said.
The proposed layoffs would be among the most extensive on Wall Street in recent years and are seen as a critical step for Citigroup to improve its returns and meet its target of at least an 11% return in the coming years, it added.
Ahead of the bell, Citi stock was marking time at $42.26.