- Jane Fraser told Citi staff that performance, not effort, will define success at the bank
- Citi's Transformation program aims to modernize technology and cut up to 20,000 jobs by 2026
- Over 80% of the Transformation effort is complete, with more job cuts expected soon
Citi chief executive Jane Fraser has issued one of her bluntest messages yet to the bank's more than 200,000 employees, making clear that performance, not effort, will define success at the firm going forward.
In a memo titled 'The bar is raised', sent on Wednesday and first reported by Bloomberg, Fraser said Citi must shed the "last vestiges of old, bad habits" and adopt a sharper, more commercial mindset. Employees, she wrote, must compete harder for business, push for a larger share of client wallets, and stop settling for secondary roles.
"We are not graded on effort. We are judged on our results," Fraser told staff, signalling higher expectations as the bank heads into 2026.
Transformation Nears the Finish Line
The tougher tone comes as Citi presses ahead with a sweeping overhaul launched in early 2024, known internally as the 'Transformation'. The programme aims to modernise legacy technology, simplify processes and cut costs, including plans to reduce headcount by as many as 20,000 roles over three years. At the outset, Citi estimated the restructuring could deliver about $2.5 billion in savings.
Fraser said more than 80% of the Transformation effort is already complete, but warned that further role reductions remain likely as efficiencies take hold. Reports earlier this week suggested the bank is preparing to cut around 1,000 additional jobs.
AI, Automation and Fewer Roles
Fraser linked the next phase of restructuring directly to automation and artificial intelligence. As work is re-engineered, she said, some roles will change, new ones will emerge and others will no longer be required.
That view was echoed by outgoing chief financial officer Mark Mason, who said headcount is expected to keep trending lower this year as productivity improves through AI-driven tools. As Transformation progresses, Mason said, both costs and staffing levels should decline.
Signs of Momentum in the Business
The cultural reset comes against a backdrop of improving financial performance. Citi reported about $85 billion in revenue for 2025, up roughly 6% from the previous year. Investment banking activity rebounded sharply, with advisory fees rising more than 80% year on year, reflecting a pickup in dealmaking.
After years of retrenchment — including exits from some consumer banking markets — executives have signalled a desire to move beyond repair mode. Fraser has recruited senior dealmakers and wealth managers to strengthen key businesses, particularly in North America.
With the heaviest lifting of the overhaul largely done, Fraser told investors the focus is shifting toward innovation, simplification and growth.
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