Citigroup CEO Jane Fraser has received support from billionaire investor Warren Buffett for the bank’s ongoing reorganization efforts. During a recent lunch meeting, Buffett urged Fraser to continue with the restructuring plans, according to a report by Reuters.
Fraser shared the details of her conversation with Buffett during a meeting with managing directors on Thursday. Berkshire Hathaway Inc., one of Citigroup’s largest shareholders, confirmed the lunch took place but did not provide any specific details about the discussion.
As part of her broad overhaul of Citigroup, which includes the elimination of 20,000 jobs, Fraser indicated that more information about the next phase of the reorganization would be shared as early as next week. However, Citigroup declined to comment on the matter.
The 20,000 job cuts are a result of the extensive restructuring initiated by Fraser in September. The bank will begin eliminating additional roles as part of this reorganization starting the week of January 22. Fraser conveyed this information to the bank’s staff in a memo seen by Bloomberg.
Fraser’s efforts to restructure Citigroup have been met with mixed reactions. While some see it as a necessary step to streamline operations and improve profitability, others express concerns about the impact on employees and the potential disruption to the bank’s operations.
Warren Buffett’s support for Fraser’s reorganization efforts is seen as a vote of confidence in her leadership and strategy. As one of Citigroup’s major shareholders, Buffett’s endorsement carries significant weight and reassures investors about the bank’s future prospects.
Citigroup’s reorganization plans come at a time when the banking industry is facing numerous challenges, including increased competition from fintech companies and the ongoing impact of the COVID-19 pandemic. Fraser aims to position Citigroup for long-term success and believes that 2024 will be a turning point for the bank.
In conclusion, Citigroup CEO Jane Fraser has received support from Warren Buffett for the bank’s reorganization efforts. The ongoing restructuring, which includes the elimination of 20,000 jobs, is part of Fraser’s broader plan to streamline operations and improve profitability. While the specifics of Fraser and Buffett’s conversation remain undisclosed, Buffett’s endorsement is seen as a vote of confidence in Fraser’s leadership. As Citigroup moves forward with its reorganization plans, the bank faces both challenges and opportunities in an evolving banking landscape.