Michael M. Santiago
Summary
- Citigroup is undergoing a restructuring process to reduce management layers, streamline its global footprint, and cut excess headcount.
- The effort to reduce senior headcount and cut reporting lines is causing confusion and may not lead to significant cost reductions.
- Citigroup’s comparable valuation and positioning are not good enough to pick it against other competitors.
Citigroup (NYSE:C) is undergoing a new restructuring process under Jane Fraser’s aim to reduce management layers, streamline the global footprint, and aggressively cut excess (senior) headcount. We already heard this kind of news in the past, and Citi has long been part of endless efforts to improve its structure while growing its business. After running a careful comparative analysis, we concluded that the current valuation is not low enough to account for uncertainties and the overall weakness of the bank. Far better opportunities are lying on the market even in similar banking stocks.
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