NEW YORK — Jane Fraser restructured Citigroup by reducing management layers from 13 to 8 and consolidating operations into five divisions that report directly to her. The changes were part of a broader turnaround plan that included divesting numerous businesses and strengthening internal controls.

Citi reported its highest quarterly revenue in a decade in April 2026, with all five divisions posting gains. The bank’s return on tangible common equity reached 13.1% in the first quarter of 2026, the highest since 2021. Citi’s stock price has risen approximately 80% since Fraser became CEO. Fraser was ranked number one on Fortune’s Most Powerful Women list in 2026.

Fraser stated that reducing management layers would result in a “simpler firm that can operate faster, better serve our clients and unlock value for our shareholders.” Mike Mayo, analyst at Wells Fargo Securities, said, “When you look back in 10 years, you’re likely to say this was the most powerful change made at Citi.” He added that after Fraser’s restructuring, “there’s nowhere to hide” at Citi.

Clifford Oswick, professor of organization theory at Bayes Business School, said research on whether flatter organizations perform better than taller ones is mixed. He said de-layering works when it serves “purposeful ends” that “people can buy into and commit to, and which is going to improve organization performance long term.” Oswick also warned that flattening an organization should drive a larger agenda and cannot just be a cost-cutting exercise or an attempt by a new CEO to “demonstrate impact.” He added that “the thing about the structure is [that it’s] one of the least important parts of an organization,” emphasizing that success depends on “really good relationships, really strong culture aligned to the organization’s mission.”