Citigroup cuts banker promotions amid cost-cutting measures
- Citigroup is cutting the number of bankers receiving year-end promotions from 8,000 to just 2,000.
- Salary increases for promoted employees will be limited to 15% due to cost-cutting efforts.
- The company's spokesperson refutes reports of significant declines in promotions, framing them instead as part of a talent strategy.
In November 2024, Citigroup, led by CEO Jane Fraser, reportedly plans to drastically cut the number of year-end promotions for its bankers. Traditionally, 8,000 employees at Citi would receive promotions during this time, but this year only 2,000 are expected to benefit from a pay raise and a more senior title. The Financial Times initially reported these changes, attributing them to Fraser's ongoing cost-cutting strategy, which aims to streamline operations and improve the bank's profitability following her promise to reduce 20,000 jobs. On the promotion front, salary increases for those promoted are also expected to be capped at 15%. However, a spokesperson from Citigroup disputed the accuracy of the report, stating that promotions are a vital part of the company’s talent strategy, and the assertion of a considerable decrease in promotions is incorrect. Fraser's tenure at Citigroup has also faced scrutiny due to past sexual harassment allegations within the company, leading to accusations that she hasn't adequately addressed the alleged toxic work culture. One notable case that emerged involves managing director Ardith Lindsey, who has filed a lawsuit against the bank, claiming a