Titi Cole, the Citigroup executive responsible for spearheading the bank’s broad restructuring plan, has resigned to join a non-profit organisation, thereby causing a loss of one of the highest-ranking Black females in the financial industry. Cole leaves Citigroup four years into her tenure, a month following Citigroup’s announcement that they had finalised most of the reorganisation outlined by CEO Jane Fraser in September.
Alongside Cole’s departure, Fraser revealed via an internal memo that Mike Whitaker, head of the technology and operations teams, is also set to leave the bank. Simultaneously, Citigroup will welcome Tim Ryan, PwC’s departing US chief, on board as the new lead of its legacy franchises and technology teams.
Ryan, who was tipped to become the global chair of the Big Four accounting firm, withdrew from the contender’s list late last year following resistance and had earlier expressed intentions of retiring at the end of June. On Tuesday, PwC announced an early US leadership transition, naming Paul Griggs as the immediate US senior partner.
Cole’s departure comes at a time when Citigroup is yet to meet its target of axing 20,000 positions – approximately 10% of the workforce – by next year’s end. The bank disclosed last month that it had informed 7,000 staff members of their impending termination. They also indicated that future job cuts will arise from ongoing automation.
Investors met the restructuring, focused on revolving around Citigroup’s five major business areas, with acclaim, particularly after consistent tepid share price growth. The bank’s stock has surged by around 50% since September.
Opinions towards the restructuring from within the bank have been mixed, with the numerous layoffs causing unease amongst staff.
While first-quarter earnings exceeded expectations despite the unrest, with earning fees outpacing competitors, profits were still lowered by about 25% compared to last year’s first quarter.
Fraser believes the bank’s new structure has boosted productivity by cutting out an echelon of top-level management and support groups. However, the overhaul also introduced a new operational unit within the bank, the Citi’s client division, drawing in a large number of employees.
Ms Cole’s departure marks a significant loss for the bank, especially considering she was one of the few top-ranked women apart from Fraser. Before joining Citi four years prior from Wells Fargo, she played a crucial role in rejuvenating the beleaguered consumer unit of the US-centric bank following numerous controversies.
Ms Cole was tasked with managing Citi’s withdrawal from consumer banking in a number of countries two years ago, as an effort to streamline the bank. Although the majority of the task has been accomplished, the sale of its substantial consumer bank in Mexico through a public offering, as opposed to an outright sale, is still pending and is projected to occur next year.
Late last year, Ms Cole was responsible for overseeing the current revamp’s execution.
An insider with knowledge of the situation surrounding Ms Cole’s move asserts that her choice to leave the bank for a non-profit organisation was independent of the restructuring and that she had envisaged her departure even prior to the announcement of the latest overhaul. – Copyright The Financial Times Limited 2024.