Citigroup continues its strategic restructuring under CEO Jane Fraser, marking another Wall Street business closure. The decision involves shutting down the global distressed-debt group as part of the ongoing overhaul initiated by Fraser. The move aligns with Fraser’s efforts to streamline the bank’s operations and eliminate underperforming businesses, aiming to achieve targeted performance goals. Internally dubbed Project Bora Bora, this overhaul was unveiled by Fraser in September, and since then, she has been actively trimming executives and scaling back various business units.

This recent closure follows the announcement from the bank about shutting down its municipal-bond trading operations. This particular business, once thriving, faced challenges and had about 100 employees. Citigroup is evidently making strategic decisions to exit businesses with subpar returns to enhance its overall performance.

The global distressed-debt group, responsible for trading bonds and other securities of companies either in or nearing bankruptcy, currently employs approximately 40 people. While Citigroup has not officially commented on the move, sources familiar with the matter revealed the decision to close this business unit.

Fraser’s leadership at Citigroup reflects a commitment to reshaping the bank’s business portfolio, focusing on areas that align with the evolving landscape of the financial industry. By closing down non-core businesses and allocating resources to more promising areas, Citigroup aims to position itself for sustainable growth and improved financial performance.

As Citigroup undergoes these strategic changes, the financial industry will be closely watching for the outcomes and impact on the bank’s overall competitiveness and profitability. Fraser’s proactive approach to restructuring suggests a commitment to adaptability and resilience in the face of dynamic market conditions, positioning Citigroup for a more robust future.