Citigroup Inc.’s Chief Executive Officer, Jane Fraser, received encouragement from billionaire investor Warren Buffett to persist in the bank’s ongoing reorganization efforts, as reported by Reuters. The endorsement came during a recent lunch meeting between the two, where Buffett, whose Berkshire Hathaway Inc. is one of Citigroup’s major shareholders, offered his support for the restructuring initiatives.
CEO Jane Fraser shared details of her conversation with Buffett during a meeting with managing directors, highlighting the importance of the renowned investor’s advice. While Berkshire Hathaway confirmed the lunch meeting, the specifics of the discussion were not disclosed.
Jane Fraser, who has been spearheading a comprehensive overhaul of Citigroup, including the elimination of 20,000 jobs, hinted that more information about the next phase of the reorganization would be revealed as early as next week. The restructuring, initiated by Fraser in September, is part of a broader strategy to streamline and reshape Citigroup for future growth.
The upcoming job cuts are a result of the ongoing restructuring efforts, with the bank set to eliminate additional roles starting the week of January 22, according to a memo seen by Bloomberg. Citigroup, however, declined to provide further comments on the matter.
Warren Buffett’s endorsement is likely to instill confidence in Citigroup’s strategic direction under Jane Fraser’s leadership, as the bank navigates through significant changes to enhance efficiency and adapt to evolving market dynamics. The support from one of its prominent shareholders reflects a broader sentiment within the investment community regarding the bank’s reorganization efforts.
