In a memo obtained by CNBC, Citi Group CEO Jane Fraser warned employees of impending job cuts, raising anxiety among staffers as they anticipate the worst. The exact number of employees to be laid off from Citi's workforce, which currently stands at 240,000, has not been confirmed, but the bank has already initiated a reduction in headcount.

Last month, Citi implemented a major restructuring plan by eliminating its two core operating units and organizing itself into five key business units. As part of this streamlining effort, the bank also discontinued 60 management committees. The intent behind these changes is to cut costs and improve operational efficiency, marking the largest restructuring undertaken by the bank in two decades.

If Fraser's actions result in an additional 10% reduction in staff, approximately 24,000 workers could be affected. This scale of job cuts would be among the deepest in recent years on Wall Street, according to CNBC. Citi currently has the second-largest workforce among American banks, surpassed only by JPMorgan Chase, which employs about 294,000 individuals in the US.

Citi Group declined to confirm CNBC's report regarding the headcount reduction. No official information has been provided by the bank regarding the estimated number of job cuts or the financial impact of the reorganization. However, industry analyst James Shanahan of Edward Jones suggests that Fraser needs to take significant measures to catch up to competitors and satisfy investors. He believes that substantial headcount reduction may be the only avenue available to achieve these goals.

Since assuming the CEO position earlier this year, Fraser has faced the challenge of improving profitability while simultaneously addressing regulatory issues and streamlining the bank. However, Citi's stock performance has lagged behind that of other investment banks, such as JPMorgan and Goldman Sachs.

To assist with the reorganization, Citi reportedly engaged the services of Boston Consulting Group, although no official statement has been provided. The consulting firm's role in shaping the bank's restructuring strategy remains undisclosed.

As Citi Group proceeds with its major reorganization, employees are left uncertain about their future within the company. With the potential for substantial job cuts, the mood within Citi is described as having extremely low morale. Staff members are left bracing themselves for what could be a challenging and uncertain period.