Citigroup (C) CEO Jane Fraser told employees that tougher standards are coming and that more job cuts are likely this year, as the bank continues to change how it runs its business. Her comments came after Citigroup reported a strong fourth quarter. Adjusted earnings per share rose 35% year over year to $1.81, beating Wall Street’s estimate of $1.65. Adjusted revenue came in at $21 billion, also above the consensus forecast of $20.94 billion.
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In a memo to staff, Fraser said effort alone is no longer enough and that employees will be judged on results. She said she expects outdated practices to fade, making way for a more disciplined bank over the next few years.
A Sharper Message to Staff
Fraser told staff to act like owners, compete harder for clients, and avoid letting opportunities slip away. The message reflects her push to improve returns at a bank that has lagged rivals for years.
Citigroup has struggled to rebuild trust with investors since the financial crisis, weighed down by weak controls and uneven results. Fraser has made fixing those problems a priority since taking over as CEO in 2021.
Technology to Change How Work Gets Done
Fraser also said automation and AI will play a bigger role across the bank. As processes become simpler, some jobs will change, new roles will appear, and others will no longer be needed.
Citigroup is already looking to eliminate about 1,000 jobs this week. The bank also said most of its work to fix regulatory issues is close to finished. Once that effort ends, some staff hired for those projects may be let go.
Is Citigroup Stock a Buy?
Ahead of the Q4 print, analysts remained highly optimistic about Citigroup’s long-term prospects. On TipRanks, Citi has a Strong Buy consensus rating based on 14 Buys and three Hold ratings. The average Citigroup price target of $126.33 implies 12.38% upside potential from current levels. Over the past year, C shares have gained 43.6%.
