Banking giant advices employees to reduce consumption of liquor

(MENAFN) Citigroup, a prominent United States banking giant, has reportedly issued warnings to its employees, particularly analysts and managing directors in the investment division, urging them to exercise moderation in alcohol consumption during client events. According to sources within the company, senior management has emphasized the importance of upholding the firm's reputation, prompting reminders to avoid overindulgence when engaging with clients.

While these memos fall short of instituting a complete ban on alcohol consumption at the bank's events, they reflect a conscious effort to address concerns related to disorderly behavior.

The move comes as Citigroup faces restructuring challenges, having announced plans to cut up to 20,000 jobs after reporting a significant quarterly loss of USD1.8 billion for the final quarter of 2023—the worst performance in 15 years. Despite the restructuring, the impact on the investment banking division is expected to be less severe than on other segments of the business. Reports suggest that the bank aims to reduce 5,000 jobs by the end of the first quarter of the current year as part of the broader cost-cutting measures.

The restructuring plan, slated for completion by 2026, is anticipated to result in expenses of up to USD1.8 billion tied to severance payments. However, Citigroup projects annual savings of USD2.5 billion, reflecting the broader efforts to streamline operations. The bank foresees an eventual decline in overall headcount to 180,000 by 2026, down from 240,000 at the beginning of 2023.

Citigroup, known for its global presence in the financial industry, has not provided official comments on the reported cautionary memos regarding alcohol consumption. The development sheds light on the challenges facing the banking giant amid broader industry shifts and emphasizes the company's commitment to maintaining a professional image in client interactions.
 

MENAFN20022024000045015687ID1107873939