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Billionaire Berkshire Hathaway (BRK.B) boss Warren Buffett extends his support to Citigroup Inc. (NYSE:C) CEO Jane Fraser as she pursues the bank’s extensive overhaul.
Buffett, a significant shareholder in Citi (C), reportedly conveyed his sentiments regarding Citi’s reorganization efforts to Fraser during a recent lunch meeting, as per a Reuters report published late Friday. Fraser, in turn, shared insights from her conversation with Buffett in a conference call with Citi managing directors.
Fraser suggested during the Thursday call with managing directors that the bank might unveil its next phase of reorganization as early as this week, according to a Reuters source familiar with the call.
Buffett confirmed the lunch meeting but chose not to divulge further details about the conversation, as stated by a Berkshire Hathaway representative cited in the Reuters report. Citi (C) declined to provide a comment.
Buffett’s endorsement comes on the heels of Citi’s announcement last Friday outlining its intention to eliminate 20,000 jobs, representing 10% of its workforce, over the next two years as part of its ongoing corporate transformation led by Fraser.
Shortly after assuming the CEO role in March 2021, Fraser revealed plans for Citi’s retail bank to withdraw from approximately a dozen countries. Last year, the bank unveiled initiatives to streamline its organizational structure by reducing management layers.
Berkshire Hathaway (BRK.B) first disclosed its stake in Citigroup (NYSE:C) with approximately 55.2 million shares in May 2022. The investment firm maintained a 2.9% stake in the bank as of the end of the third quarter of last year.
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