Mumbai, January 15: Citigroup CEO Jane Fraser has issued a stark warning to the bank’s 200,000-plus employees, signalling a transition from a period of restructuring to one of strict accountability. In an internal memo titled “The Bar is Raised,” sent on Wednesday, January 14, Fraser told staff that "old, bad habits" must disappear as the firm enters the final phase of its multi-year "transformation" program. The message underscores a shift toward a more aggressive commercial mindset, with Fraser explicitly stating that the bank will no longer grade employees on effort, but on tangible results.

What Does the Memo by Citigroup CEO Jane Fraser Say?

The memo, which began circulating following Citi’s better-than-expected Q4 2025 earnings report, serves as a rallying cry and a warning. Fraser urged staff to adopt a "winning mindset" and compete more fiercely for client business. "Every one of us has to adopt a more commercial mindset: asking for the business, competing for the full wallet, and not settling for a secondary role," she wrote. Zoho Founder Sridhar Vembu Divorce Battle: Know All About His Net Worth and 1st Wife Pramila Srinivasan.

Key Directives in the Memo Include:

Eliminating 'Legacy' Behaviours: A call to shed bureaucratic or slow-moving habits that have historically hindered the bank’s performance compared to rivals.

Increased Automation: A warning that as AI and automation are further integrated, roles will continue to shift or be eliminated.

Commercial Intensity: A push for revenue-facing teams to maximise every client opportunity.

The 20,000-Job Reduction Target

This internal message arrives as Citi executes a massive workforce reduction. In early 2024, the bank announced plans to cut 20,000 roles by the end of 2026. This week alone, reports indicate that roughly 1,000 jobs are being shed as part of that ongoing streamlining effort.

Outgoing CFO Mark Mason tied the headcount reduction directly to technological efficiency, noting that "cost and headcount will continue to trend down" as tools like Generative AI take over manual tasks. Fraser noted in her memo that while 80 per cent of the "Transformation" work is complete, the focus is now moving toward re-engineering core processes to make the bank leaner and faster.

Who Is Jane Fraser?

Jane Fraser, 58, made history in March 2021 when she became the first female CEO of a major Wall Street bank. A British-American executive born in Scotland, she holds an MBA from Harvard and an MA in Economics from Cambridge.

Her career before the CEO role includes:

Partner at McKinsey & Company: Where she spent a decade in financial services.

Crisis Management at Citi: Joining in 2004, she was part of the team that led the bank through the 2008 financial crisis.

Global Leadership: She served as CEO of Citigroup Latin America and CEO of the Global Consumer Bank before succeeding Michael Corbat.

Fraser is widely viewed as a "fixer" who was brought in to simplify Citi’s sprawling, complex structure - a task that has involved exiting several international consumer markets and flattening management layers. Citigroup Layoffs: US-Based Banking Giant To Cut 30% of Tech Workforce To Reduce Third-Party IT Staff Dependence After USD 22.9 Million Fraud.

The Road to 2026

Under Fraser’s leadership, Citigroup has sought to close a long-standing valuation gap with peers like JPMorgan Chase and Goldman Sachs. While the bank reported USD 85 billion in revenue for 2025 (a 6 per cent year-over-year increase), it remains under pressure to improve its Return on Tangible Common Equity (RoTCE).

The 2026 target for RoTCE is set between 10 per cent and 11 per cent. Fraser’s memo indicates that reaching this milestone will require the bank to be "more disciplined and more confident," leaving no room for the inefficiencies of the past.

(The above story first appeared on LatestLY on Jan 15, 2026 02:28 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).