As part of her Citi turnaround, Jane Fraser cut management layers from 13 to 8. But the ‘great flattening’ doesn’t always work as intended
Jane Fraser, CEO of Citi, has restructured the bank by reducing management layers from 13 to 8, aiming for a more efficient organization. This change has contributed to significant financial improvements, including the highest quarterly revenue in a decade. However, experts caution that while flatter organizations can enhance agility, they may also lead to challenges such as overwhelmed managers and unclear roles.
- ▪Citi's restructuring under CEO Jane Fraser has reduced management layers from 13 to 8.
- ▪The bank reported its highest quarterly revenue in a decade, with all divisions showing gains.
- ▪Experts suggest that while flatter organizations can improve performance, they may also create challenges for employees.
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When Mike Mayo, the long-time analyst at Wells Fargo Securities, reflects on the turnaround CEO Jane Fraser has engineered at Citi, one decision stands out: her restructuring of the bank into five divisions that report directly to her. Recommended Video “When you look back in 10 years, you’re likely to say this was the most powerful change made at Citi,” he said. Now, Mayo told me for a profile of Fraser in the current issue of Fortune, “there’s nowhere to hide.” There are fewer dark corners in lower levels of the company too.
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