Citigroup Offers Partial Early Bonuses to Encourage Staff Departures

Executives hope offering staffers a portion of their annual bonus will coax more of them to leave rather than having to rely solely on layoffs for the restructuring, the people familiar with the matter said.

Employees who accept the offer are still expected to honor their requirements for gardening leave, meaning they cannot immediately take a new job, the people said.

For staffers considering their options, the offers are a chance to earn a guaranteed portion of their bonus rather than running the risk of remaining with Citigroup only to be caught up in the cuts early next year, which could leave them jobless with no bonus.

The New York-based lender has already cut more than 300 senior management roles as part of the revamp. Those are part of a wider staff cull that is expected to continue into 2024, though the company has yet to put a figure on the ultimate number of job cuts.

“Building a winning bank requires a great deal of commitment, hard work and resilience from each of us,” Fraser said in a memo to staff last month. “I’m fully aware we’re asking a lot of our people.”

For some elite traders and bankers, their annual bonuses can stretch into millions of dollars and is often many multiples of their annual salary. Citigroup typically awards staffers their bonuses in February.

(Credit: Bloomberg)