Citigroup Slashes Annual Staff Promotions Amid Extensive Banking Overhaul

The organisation’s decision primarily affects ‘in-seat promotions’, where employees traditionally receive pay increases and enhanced titles without substantial changes to their roles or responsibilities. Unit heads have recently conducted team meetings to manage staff expectations, clarifying that promotions will largely be restricted to individuals taking on new roles or additional responsibilities.

Even for those fortunate enough to secure promotions, pay rises are expected to be capped at 15 per cent, though sources close to the matter describe this figure as a flexible guideline rather than a strict limitation. The move has reportedly led to declining staff morale, with recent town halls addressing workplace stress and toxicity concerns.

The bank’s restructuring initiative, launched by Chief Executive Jane Fraser over a year ago, aims to streamline operations and reduce costs. The programme initially targeted the elimination of 20,000 positions from its 229,000-strong workforce. An additional 40,000 staff members could potentially transition off Citigroup’s payroll following the planned initial public offering of its Mexican retail bank, Banamex.

Regulatory scrutiny has somewhat hampered more aggressive job cuts, with the bank facing a £136 million fine in June for unresolved risk control and data management issues. The organisation is now exploring alternative cost-reduction methods, including a controversial ‘re-levelling’ process where staff members might be moved to lower tiers with corresponding pay reductions.

A company-wide town hall scheduled for 5 December will provide updates on the transformation programme, featuring Chief Operating Officer Anand Selva and Head of Human Resources Sara Wechter, who will address talent management and cultural transformation within the institution.