Citigroup CEO Jane Fraser is one of the CEOs of Citigroup wealthThe most powerful woman — and Wall Street’s top female executive — is pushing for about 1,000 job cuts and warning employees in a fiery internal memo that “we will not be graded on effort,” setting a tougher tone for 2026. The cuts are part of a multi-year overhaul that could ultimately see up to 20,000 jobs cut, as Fraser demands tangible results and an end to what she calls the bank’s “old bad habits”.
In a memo previously reported by Bloomberg, Fraser told Citi’s roughly 200,000-plus employees that “the bar has been raised” and stressed that performance would be judged on results rather than intentions or long hours worked.
“We are not graded on effort. We are graded on results,” she wrote, adding that as banks pursue a leaner, more commercially aggressive culture in 2026, she expects “the last vestiges of old bad habits” to disappear. The words, one of her most pointed internal messages since taking office in 2021, underscored the shift from transformation planning to execution.
Fraser’s approach also illustrates why wealth Contributor Jeffrey Sonnenfeld, professor of the practice of leadership at the Yale School of Management, selected the Citi CEO as one of 2025’s top performers. Fraser’s “Plan Bora Bora” restructuring resulted in full-year 2025 revenue of $84 billion, the highest level since 2010, with all five business units hitting record highs last quarter. The latest earnings quarter saw all five business units set quarterly records. The stock’s performance ranking rose 67% in 2025, making it the best performer among major U.S. banks. Fraser was elected chairman of Citigroup’s board of directors that year and was named “Banker of the Year 2025” by Euromoney magazine.
Citigroup is preparing to cut about 1,000 jobs this week, as Bloomberg previously reported, according to people familiar with the matter, a move that follows previous rounds of layoffs and brings the bank closer to a broader plan to cut about 20,000 employees, or about 8% of its global workforce, by 2026. The layoffs are related to a sweeping restructuring announced in early 2024 to simplify management, streamline the business and generate cost savings of up to $2.5 billion. Citi has cut more than 10,000 jobs under Fraser’s reforms.
Fraser’s memo marks a cultural reset for a bank that has long been criticized for lagging rivals on profitability and efficiency, and she explicitly asked for time to correct legacy practices that she said have undermined Citigroup’s competitive advantage. She urged bankers to adopt a more “commercial mindset”, telling staff to “want business”, competing with clients for their “wallets” and not settling for minor roles or missing out on opportunities.
Job cuts are being accelerated by investments in automation and artificial intelligence, which are changing the way banks work across the board. Fraser told employees and investors that as Citi completes more than 80% of its massive “transformation” plan, technology and process simplification will mean some roles evolve, new positions emerge and “other positions will no longer be needed.” Outgoing Chief Financial Officer Mark Mason said that while Citi continues to hire top talent in key areas such as investment banking, he expects headcount to continue to decline this year as artificial intelligence tools and streamlined processes become more widespread.
Frazier targeted 2026 as the year a “more disciplined, more confident, winning Citi” must emerge across the board, arguing that transformation and painful cuts are laying the foundation for stronger, more stable returns. But the strategy is risky: Citi must prove to investors that layoffs, technology spending and cultural changes can close its long-standing performance gap with Wall Street rivals while maintaining employee morale, and she now bluntly reminds that hard work alone is not enough.
For this story, wealth Journalists use generative AI as a research tool. Editors verified information for accuracy before publishing.
This story originally appeared on Fortune.com