Citigroup cut bonuses for senior bankers by up to 20% this year and has skewed payments towards high-performing staff as it continues to overhaul its business under a strategy shift pushed through by chief executive Jane Fraser.

The US bank has cut bonuses for directors and managing directors within its investment banking business by between 15% and 20% this year, according to people familiar with the matter. The reductions came as Citi posted an 11% decline in dealmaking fees for 2023 and kicks of a strategy change to its business that will see 20,000 jobs lost.