Citigroup's 20,000 job cuts are not what you think

efinancialcareers.com:

If you've been keeping abreast of recent events at Citigroup, you will know that the bank is cutting 20,000 jobs. You will also know that it's already informed London employees that cuts are coming, starting next week. But do not be deceived into thinking that you know everything. 

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When it announced the 20k layoffs last week, Citi followed up with an explanation of how it plans to achieve them. Only a small proportion of the cuts will be a direct result of the simplification initiative at the center of Project Bora Bora. 

Speaking to investors on Friday, Citi CEO Jane Fraser said that just 5,000 of the 20,000 Citi job cuts will come from a reduction in layers of management. Under Bora Bora, the bank is reducing its hierarchical complexity and cutting managerial layers from 13 to eight. In doing so, it's changing reporting lines so that senior staff will have more reports, while middle manages will have more autonomy (CFO Mark Mason outlined how this will work in his finance team here).  

The 5,000 «mainly managerial» job cuts are happening fast. Fraser said Citi's 12,000 managers have already been reduced to 10,800 as four layers were removed in three phases that began late last year. Cutting the fifth and final layer could seemingly be the most painful yet: Citi has 3,800 of its 5,000 mostly managerial job cuts still to go. When the process is over, likely at the end of Q1 this year, the bank will seemingly have up to 40% fewer managers than it started with.

Even if 5,000 managers are cut, however, Citi will still need to find another 15,000 job cuts to get to its 20,000 total.  These 15,000 additional cuts, which will take place through to 2026, will require a