Jay McInerney joins us again to explain that the Generative AI jobs exodus has begun in earnest; right above us in the glittering world of finance, where the skyscrapers are as high as the stakes.

And lest we not be confused by recent statistics that appear to contradict job growth numbers, Claremont Institute Communications Director Nick Short affirms that, “72% of all job gains since 2021 were simply jobs that were being recovered from the pandemic, not new job creation, including all 199,000 jobs reported in November.

The growing pressure on a recession includes unseen changes at a myriad of large corporations who have spent the last year, figuring out the best and most immediate way that shareholders can benefit from applied GAI.

Top Jobs Go First

Citi, that venerable finance conglomerate, has begun cutting through the layers of management like a knife through butter. It’s the bank’s most significant restructuring in a decade, a move that’s putting multiple CFO roles on the chopping block as Citi hunts for efficiencies in its sprawling empire.

At the heart of this corporate drama is CFO Mark Mason, the man of the hour at Goldman Sachs’ U.S. Financial Services Conference. He’s now the maestro of a financial symphony that was once played by a whole ensemble of CFOs, each leading their own division – from institutional clients to personal banking, and wealth management to various global regions.

Mason, in his new solo role, talked about a time when CFOs for the bank’s core businesses were as common as martinis at a Manhattan cocktail party. “By eliminating those roles, those businesses are now sitting at my table,” he said, a statement that echoed with the finality of a closing bell on Wall Street.

Bold and Dangerous

The bank is shedding these CFO positions, along with their support roles, not just to save a few bucks but to revamp how the company runs – more streamlined, more “effectively.” Its part of a grand plan that Mason outlined back in June, one that’s as ambitious as a moonshot – a technological transformation coupled with a plan to exit from 14 countries. It’s the kind of bold move that gets you a standing ovation or sends you packing.

The end of the first quarter of 2024 is marked as the grand finale of this restructuring opera. It’s the brainchild of CEO Jane Fraser, who, in a move as deft as a chess grandmaster, scrapped the bank’s old two-division structure in favor of five sleek new units reporting directly to her.

The plan isn’t just about cutting costs; it’s about reshaping the very anatomy of the bank. With a 10% cut in management that’s just two steps down from the executive suite, it’s a top-to-bottom makeover. “We have been very deliberate,” Mason said, hinting at a strategy as meticulously crafted as a bespoke suit.

Plan for More Next Year

When the fourth-quarter earnings come around next year, Mason promises a show where the bank’s new core businesses will be on full display, their returns laid bare for all to see. Its accountability and transparency, served up on a silver platter.

With an anticipated $54 billion in expenses for 2023, including a cool billion for restructuring (not counting a $1.65 billion FDIC special assessment charge), the bank is betting big. Mason’s crystal ball for 2024 shows expenses hovering between $51 billion and $53 billion, but looking further out to 2026, he sees these restructuring moves putting a steady squeeze on expenses.

Citi’s restructuring is more than just corporate reshuffling – it’s a statement, and an acknowledgement without mentioning AI that they are already leveraging the technology for eliminating redundant and needless labor. As the revenues hover around $78 billion, you can bet there will be more to come soon.