Citigroup has faced significant challenges in training employees in key areas such as risk, compliance, and data management, according to an internal assessment seen by Reuters.
The bank, which has been under two regulatory consent orders for the past four years, has struggled with a shortage of skilled personnel and inadequate training tools. These issues have slowed efforts to address regulatory concerns raised by the US Federal Reserve and the Office of the Comptroller of the Currency in 2020.
The assessment highlighted "insufficient compliance risk management skills" among staff, which is contributing to delays in resolving the consent orders. The situation became more complex when Citigroup's CEO, Jane Fraser, launched a massive restructuring in September 2023. This restructuring led to thousands of layoffs and a reduction in management layers. Some of the affected employees had been involved in addressing regulatory issues. However, Citi has denied that the layoffs hindered their progress and emphasized its continued investment in talent and training.
The bank has committed billions of dollars to its transformation project, which focuses on improving risk management, controls, and data handling. Citigroup has around 13,000 employees dedicated to this overhaul, supported by thousands more across its workforce of about 229,000.
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